UK Businesses to be Hit with “£29bn in Extra Costs”
Business owners believe new policies such as the national living wage and apprenticeship levy will have negative effect on small enterprises
UK small businesses will be hit with over £29bn in extra costs following the introduction of new government policies, research by the Confederation of British Industry (CBI) has claimed.
The national living wage and apprenticeship levy are among new legislation which business owners believe will have a negative effect on small enterprises.
The flagship schemes, being introduced in April 2016 and 2017 respectively, are said to cost British businesses around £9bn every year by 2020-21 when added to existing costs.
The findings are a stark contrast to an earlier promise that the government would cut at least £10bn in red tape for small businesses over the next five years.
CBI director-general, Carolyn Fairbairn, said:
“The UK needs to be able to grow its way out of the deficit, but the danger of this rising policy burden is that it holds back businesses.
“This cost burden has now crept up far enough, if the government is serious about supporting the UK’s companies to drive growth in the economy.”