Regulators failing small firms, says taskforce

In a report published today, the taskforce says the impact of regulation of small businesses is not sufficiently recognised by policy makers.

‘Regulations frequently put small businesses at a disadvantage against larger competitors and impact disproportionately on them,’ said task force chairman Lord Haskins.

‘Too often, departments underestimate the impact of their decisions on small businesses. We want to see better consultation and clearer assessments of the likely impact of regulations.’

Research by the task force has indicated that more could be done to help small firms comply with regulations, including better information, simplified procedures and compensation.

The report also says there information for small firms about their obligations is often difficult to obtain and is too general. It also says lack of joint working between government departments does nothing to mitigate the impact of separate regulations on businesses.

Haskins added: ‘The creation of the Small Business Service should enable the government to address many of the concerns raised in this report. We hope the government responds positively to our ideas and builds on them to ensure that the SBS is successful where previous initiatives have failed.’

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