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Deputy PM promises to cut Red Tape for SMEs

Nick Clegg will address small businesses leaders in Shoreditch this morning to discuss how the government plans to cut red tape.

The Deputy Prime Minister will criticise unnecessary and burdensome regulation, which small businesses are often forced to contend with, but will support some legislation, including the minimum wage, parenting laws and carbon budgets.

He will say: “ I support regulations which support growth, but what I won’t abide is reams of unnecessary red tape: complicated, expensive.

“Especially when the burden is so much heavier for small businesses.”

The average small business owner spends around a day a week complying with government regulation rather than bringing in new business.

Mr Clegg will state that the Coalition is “on a mission to liberate small business” from red tape constraints, and vowed to be the first British government to reduce the overall burden on businesses, rather than increase it.

The Business Secretary Vince Cable has introduced a radical one-in-one out policy to halt the tide of new regulation, and plans to hack away at laws, which already exist.

The Government’s Red tape Challenge has already looked at 400 retail and hospitality regulations, of which 220 will be simplified or scrapped.

He continues: “ Where people have expressed support for regulation, we’re keeping, like with the hallmarking system for gold and silver.

“But if it’s tedious and pointless, it’s going.

“The end result will be a system designed for busy, working people, rather than a job creation scheme for accountants and lawyers, and a system that saves you money.”

Mr Clegg believes the Government attack on red tape has already cost British businesses £3 billion, and a further £600 billion could be saved by the decision to exempt more companies from being audited.

He also called on businesses to play their part, and encouraged more to tell the Office of Tax Simplification what regulations put the more pressure on their company.

He will add: “The country needs you focussing on making your business a success, not distracted by the endless hoops you have to jump through. This is now urgent.

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