According to Business Minister Michael Fallon, business regulators need a shake up to ensure that red tape and administration necessities don’t get in the way of growth from the business community. Ensuring that upholding standards doesn’t create a barrier to growth and enterprise amongst the UK business sector. This is a key point – many SMEs feel that red tape is tangling them up, meaning they’re unable to fulfill their potential in the UK market.
Fallon has launched two new consultations to re-shape the way that regulators work with business. Both regulators and businesses are invited to contribute to the development of a proposed ‘growth duty’ for regulators; this will require them to take into account the economic impact of their activities, especially concerning the businesses they are there to regulate.
Another consultation will seek to uncover views on the Regulators’ Code; this will remove uncertainties for businesses by making it clear what they can expect from the regulators. This means more accessible advice, with methods of enforcement tailored to the type of business being regulated.
“Regulators have a vital role in protecting the public and creating a level playing field for competition, but red tape should never restrain hard-pressed businesses that play by the rules from growing and creating jobs,” Business Minister Michael Fallon said. “The quality of information, guidance and enforcement delivered by regulators directly affects the ability of a business to grow and succeed. So I’m inviting firms to help us craft a new settlement that supports enterprise without compromising standards.”
So, will this mean less red tape and an easier time for small businesses? New rules from Whitehall state that all new regulations need to be offset by cuts in costs to businesses – this is already set to save over £1 billion. These new consultations show an ongoing will to improve the situation amongst the fifty non-economic regulators linked to businesses of all sizes. Hopefully the greater concern with their impact on growth, along with more advice, will make things a bit easier to manage for even small businesses.