Red tape hits small pubs hard, admits government

The burden of red tape placed on pubs has been highlighted in a government report designed to help small businesses.

A report by the Better Regulation Executive focuses on the findings from interviews with 500 micro businesses, which all have fewer than 10 employees.

Businesses are "struggling to cope with existing regulations and that each new regulation or change simply adds to their problems", the report found.

It also states small pubs face particularly difficult challenges.

The report says: "We found that micro pubs have a particularly high regulatory burden - they have to be registered with around five agencies, have around eight licences of various kinds and have to keep written records for National Minimum Wage, PAYE, food safety and refusals of underage sales.

"They also have to pay for staff training, waste collection and recycling."

It adds: "A number of pub operators said that they were either struggling from month to month or said that they were unable to make a profit but 'couldn't afford to close".

The report has been welcomed by trade group the BII, which has been working with the executive.

Neil Robertson, BII chief executive, said: "We gave a submission and arranged for them to speak to operators. It is an example of progress being made and there is more to come."

The report will now be passed to enterprise tsar Lord Young to consider as part of the government's review of how it can help small businesses.

Earlier this week it was revealed that measures to deregulate small businesses announced by Deputy Prime Minister Nick Clegg have been passed to the Home Office.

A consultation on the issue attracted 46,000 responses and proved too much for his department to cope with. The You Freedom website that attracted the responses has now been closed.

Read the full report at Lightening the Load