Small businesses dubious over red tape promises

Four out of 10 of small business owners doubt that the new Government will be able to reduce the rules and regulations they face.

Only 28% of respondents said that the coalition will help free them of red tape, according to research by the Forum of Private Businesses.

A staggering 89% of people questioned said that they felt that legislators do not understand how regulations affect small employers. 

Many explained that they didn't think the new government will make a difference because past initiatives similar to this had failed.

Others on the Forum's Red Tape research panel said that "civil servants and other policy-makers would get in the way of Tory attempts to streamline UK workplace law".

The government relying on large corporation leaders for advice on business regulation was also a concern.

Employment law and regulations surrounding taxation were other hot topics, and the complexities over business legislations was the most controversial.

Respondents said they follow what they think is the best practice in the workplace, rather than "trying to understand and interpret ambiguous areas of the law".

The Forum's research manager, Thomas Parry, said: "Traditionally, there's always been a lot of support for the Conservative party among small business owners, so you would expect them to have a fair amount of faith in the coalition's pledge to cut red tape.

"However, it would appear that many small firms feel as though we are now past the point of no return with legislation. There's a sense that because there's so much of it and it's so deeply embedded in our legal framework, any attempts to tackle it are doomed to failure. 

"The level of change required - around a 50% reduction in terms of the time business owners spend on completing forms - is unlikely to be met without a radical rethink of legislation."