‘The red tape has got out of hand’

11:15pm Saturday 19th April 2008

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Accountants in West Yorkshire are urging the European Commission to cut red tape for small firms.

The weight of red tape is one of the main reasons for the imminent closure of McCann's DIY store in Oak Lane, Manningham, a family-run business which has been trading for more than 60 years.

Bradford accountants' leader David Warren, of MGI Watson Buckle, said increasing regulation from both the EC and the UK Government had become a worrying problem for many small businesses.

Mr Warren, president of the Bradford Society of Chartered Accountants, said: "The increasing weight of regulations has become a major headache for owners and operators of small businesses.

"The forms that have to be completed are the same whether it is a large business or a one-person firm.

"While large companies have the in-house resources and expertise to cope with them, for small businesses it has become a growing burden."

David and Julie McCann are selling up and closing their popular DIY store in Oak Lane mainly as a result of red tape.

Mr McCann, 57, said: "Like most small businesses, we are having to cope with an increasing amount of red tape which means spending more time working in the office filling in forms than being out in the shop serving customers. This has taken a lot of the fun out of running the business. We're not administrators, we're shopkeepers. The red tape has got out of hand, particularly in areas like health and safety.

"I don't think the Government understands the burdens it puts on people trying to earn a living by running a small business."

The Institute of Chartered Accountants in England and Wales says the total annual cost to business of implementing new legislation stands at £10.2billion in the UK alone.

It wants less regulation on small and medium enterprises as part of its initiative to modernise European policy covering smaller firms.

The ICAEW will be pressing its case with UK ministers and EC officials before the proposals are finalised by the end of June.

In its response to an EC consultation on a small business act for Europe, the Institute says a one-size-fits-all' approach to business has created a disproportionate burden on SMEs.

The ICAEW has asked for a review of the administrative burdens on SMEs, particularly the collective impact of employment law, health and safety legislation and VAT.

Mr Warren said: "A fresh approach to SME policy across Europe is needed. Any future legislation should be based on evidence, focused on incomes, simply communicated and easily applicable."