Shock survey: Red tape doubles
The cost to small businesses of complying with new legislation has more than doubled since last year, according to an English ICA survey.
Compliance with regulations is considered to be the most serious barrier to growth for the UK’s smaller businesses and is causing them serious difficulties, the research reveals, according to the Evening Standard.
It adds that advisers estimate that the average cost of compliance with regulation for businesses employing ten or less people is the equivalent of four to six per cent of their total turnover.
Adherence to legislation is perceived as diverting resources and time away from business planning, with more than 40% of advisers to small businesses and sole traders citing this a problem area.
For businesses with less than 10 people, the average cost of implementing new legislation is thought to have risen from £1,700 last year to £3,600 this year, the survey adds.