If your business is struggling to cope with red tape and regulation imposing increasing burdens on your finances, then there is a new scheme to come in next year which you could benefit from. The government has today announced plans to double the rate at which the costs of red tape to businesses will be reduced.
Business Minister Michael Fallon has announced that from January 2013, every new regulation that imposes a new financial burden on firms will be offset by reductions in the amount of red tape that will save double the cost of the new regulation. This new ‘One in, Two out’ rule will be imposed in every government department from next year, and will apply to all domestic regulation affecting businesses and voluntary organisations.
Not surprisingly, experts are predicting that this new rule will be welcomed by businesses. The British Chambers of Commerce have commented: “Business welcomes the government’s efforts to deregulate. Unnecessary red tape costs firms time and money and can act as a barrier to growth. The new regime of “One in, Two out” should go some way to reducing needless bureaucracy faced by companies.’ However, it will only apply to those regulations within the remit of the UK government; for example, EU rules and regulations will not be included.
This scheme is another example of the UK government looking to help businesses to grow and expand with as few restrictions as possible, helping recovery for the fragile economy. Without growth, not only will the economy stagnate but unemployment will remain high; small and medium businesses in particular are providing huge amounts of jobs and often exhibit rapid growth and job creation in the right circumstances.
With bank lending initiatives such as Funding for Lending not producing the funding results for SMEs that were predicted, it is schemes like this which can act as a bit of a contingency. However, small business funding is still all important.