Businesses feeling more red tape burden

A SIGNIFICANT PROPORTION of businesses believe that red tape has increased in the past year.

The ICAEW survey found of more than 600 businesses fonud that 24%  believed the UK’s regulatory environment had a worsening impact on their business since a year earlier.

A third of the medium sized businesses (with employees between 50 and 249) felt the situation had worsened, while 19% of small business (10 to 49) agreed.

Just 12% of micro businesses felt the situation had worsened.

The results will come as a blow to a government that has set its stall out on making it easier to do business, while in tandem trying to find economic growth.

“With businesses cutting back on investment in response to concerns about the economy it is hard to see where growth will come from,” said ICAEW CEO Michael Izza.

“One thing is certain and that is businesses need reasons to be more confident. With this in mind we will be urging the chancellor and the prime minister to pull out all the stops to encourage growth – starting with reducing the regulatory burden.”

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