Business secretary John Hutton will this week propose that companies employing less than 20 people should be exempt from future EU regulations, in order to cut the red tape hindering small businesses and start-ups.
According to the Financial Times, Hutton will ask for the exemption to be written into the European Small Business Act which is currently being drafted.
Mr Hutton’s approach is likely to be welcomed by Gunter Verheugen, EU enterprise commissioner, who is behind a proposed legal framework to help reduce the burden on small businesses.
In a letter to Mr Verheugen, Hutton will call for proposed laws to be subject to approval only once a full assessment of their impact on small companies has been carried out.
According to the FT report, Hutton is also going to offer a word of advice to his European counterparts, recommending that key legislation is introduced on one or two days a year only. This, argues Hutton, would enable businesses plan ahead and save money in the process.
© Crimson Business Ltd. 2008
