Red tape costs rise

A third of small businesses in the UK are spending more than £3,600 a year on red tape, according to new research.

The research, which was carried out by business support group the Forum of Private Businesses (FPB), found that red tape is a "serious and increasing" problem for small businesses - many of which are pubs.

Red tape, along with business rates, employee skills and employment regulations, was rated as a major concern by the businesses that took part in the research.

Garry Parker, head of policy at the FPB, said: "The cost of more than £300 per month for many small firms to comply with red tape is an insupportable cost to any business.

"The FPB would suggest that the actual cost itself is not the only concern - a significant fact is that small business owners perceive that red tape has been an 'increasing' burden over the past few years. The reality for small business owners is that the burden of form-filling, licence-applying and inspection-complying is always increasing."

Kate Nicholls, spokeswoman for the trade's Red Tape Group, said she was not surprised by the research's findings.

"All the feedback we have received suggests small businesses within our sector are spending an increasing amount of time and effort coping with red tape, sometimes up to five or six hours each week," she said.

The FPB's research asked businesses to indicate the level of impact certain pieces of legislation had on their trade.

Nineteen per cent of those asked said the working time directive had a "high impact" on their business, while 18 per cent chose stakeholder pensions and a further 18 per cent the national minimum wage.