The Federation of Small Businesses (FSB) says that government is failing to meet its commitments to common commencement dates and to reducing the regulatory burden.
April 6 marked the first of two common commencement dates for regulation in 2008. The dates are designed to make the regulatory environment more predictable, but the government is ignoring its own rules by introducing regulation throughout the year.
No less than 82 new pieces of business legislation were introduced on April 6, an increase of 12 per cent on the same day last year. But this does not take account of the regulations introduced outside the two common commencement days. These include:
• The London Low Emission Zone – February 4
• Change to provision of free child places in private nurseries – April 1
• Changes to rules on employing foreign workers in the Immigration, Asylum and Nationality Act – February 29
The cost of this regulatory splurge to the UK economy is significant. The government’s own Annual Survey of Small Businesses’ Opinions 2006/07, found that over regulation inhibited 90,000 small businesses from growing.
John Wright, FSB National Chairman said:“By ignoring its own common commencement dates the government is effectively sneaking regulation in through the backdoor in the hope that no one will notice.
“At a time of growing economic doubt and rising youth unemployment the government is stunting the growth of the same small businesses that are expected to deliver innovation, growth and jobs.
“If each of those 90,000 small businesses created just one more job we could fill Wembley Stadium with new employees. This should be the government’s target.”
