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Red tape "costs NE £2.2bn"

Government red tape has cost North East businesses £2.2bn since 1998, according to new figures released today.

The annual Burdens Barometer evaluates the impact of any new government regulations on business introduced since 1998.

The report shows that over 100 separate pieces of legislation directly affecting businesses have been introduced over the past 11 years.

Ross Smith, head of policy and research at the North East Chamber of Commerce said: “These results reveal the heavy impact that new legislation is having on business.

“Given the current economic climate, Government needs to exercise more care than ever to make sure it is not burdening businesses unnecessarily with additional legislation.”

The North East figure has been released as part of a national report, published by the British Chambers of Commerce, that calculates the total cost to UK businesses at £76bn, an increase of £10bn since last year.

The report is compiled from the Government’s own figures which estimate the cost of new regulations to businesses.

According to the report the most expensive burden to UK business is the set of Working Time Regulations introduced in 1999, which have cost businesses nationally £17,800m since 1998.

Mr Smith added: “The Government needs to take a hard look at all proposed legislation and call a moratorium on any unnecessary regulations that will prevent companies focusing on their core business.

“This principle should be followed at all levels - we need similar rigour from Brussels and from our local authorities when they implement regulations.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .