Red tape burden heavier for firms

Yorkshire business leaders have warned that the cost of red tape is still rising as a new report shows British firms typically have to comply with 60 different regulations governed by a host of official bodies.

Andy Tuscher, regional director of manufacturers’ organisation EEF, called on David Cameron to live up to his ‘one-in, one-out’ pledge not to increase the overall burden of workplace rules.

He was speaking as a National Audit Office (NAO) report, published today, warned that Government departments do not know the total impact of red tape on British business – although a British Chambers of Commerce study this week put the cost of new employment laws alone at nearly £23bn over the next four years.

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Mr Tuscher said the coalition Government had yet to deliver on its pledge to cut red tape.

“We conducted a robust survey towards the end of last year and the cost of regulation and red tape, was second to the tax burden as the major issue with our members. We regularly get feedback that this cost rises year on year and is a growing issue.”

Margaret Wood, regional chair of the Institute of Directors, warned that the number of rules was pushing companies out of Britain and said it was particularly difficult for firms to hire new staff.

The NAO report also said Government departments do not communicate effectively on the regulations they impose.

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