FSB calls for freeze on business regulation

The Government must put a stop to all new business regulation and simplify red tape if it is to seriously tackle rising unemployment.

That's according to the Federation of Small Businesses (FSB), which has called for a freeze on all new regulations.

The FSB has outlined plans to streamline regulation, which could create and save around 300,000 jobs.

A survey of members showed that 27% had been put off expanding because of complicated regulation.

Of those who planned to downsize or close, 50% said their decision was strongly influenced by the regulatory burdens they faced.

According to the Government's own figures, 60% of businesses listed regulation as an obstacle to success.

FSB is calling for:

• A moratorium on business regulation during the recession and for the first 18 months after recovery.

• Accelerated simplification of current laws including maternity and paternity law, discrimination law and health and safety legislation.

"We cannot and must not underestimate the burden that unnecessary regulation puts on small businesses," said FSB national chairman John Wright.

"Around half of all firms planning to close or down-size were influenced in that decision by the heavy impact of regulation. However, we know that small firms want to employ more staff and the Government should be making it easier for them to do so, especially as we pull ourselves out of recession and into recovery.

"The FSB is urging the Government to give the UK's regulatory environment a strategic overhaul, to provide it with what will amount to a second economic stimulus, to boost growth and employment."