Small Businesses Face £23bn Red Tape Bill

BCC Employment Burdens TimelineNew employment regulations due to be introduced over the next four years will cost UK businesses £22.17 billion, the British Chambers of Commerce (BCC) has calculated.

The BCC’s Employment Timeline (PDF) reveals a raft of regulations which are due to be introduced between April 2011 and April 2015. These include the Agency Workers Directive (2011) and Pension Reform (2012), which the business group claims will cost UK firms £1,548 million and £4,526 million respectively per year.

“The Government claims business growth is top of the agenda, yet UK firms will be hit with huge costs once these new regulations come into force.”

said BCC director general, David Frost.

“Companies cannot generate growth and create jobs when they are facing a £22 billion bill, just to implement the new employment legislation.”

“These new regulations, such as changes to the right to request flexible working, paternity leave, and the abolition of the default retirement age, will leave employers confused, and distract them from growing their business.”

“The Government must use the upcoming Budget to act on its promises and deliver concrete reductions in the regulatory burden.”

A spokesman for the Department for Business, Innovation and Skills (BIS) said:

“The Government is looking at the entire spread of employment law ? including health and safety, and employment rights ? to see how they can be simplified, while making sure employees are still protected.”

“We’re also debating the possibility of exempting small firms from some laws to help make it easier for them to employ people, but there is no timescale yet.”

For further business advice see our list of articles tagged under Employment Regulations.

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