The cost of regulations for businesses has risen by £77bn since Labour came to power, it has been claimed.
The British Chambers of Commerce (BCC) has released its 2009 Burdens Barometer which shows that the cumulative cost to business of new regulation since 1998 has risen to £76.81bn. This is a jump of over £10bn from last year.
However, the BCC has also found that some regulations are also saving money - 18 regulations since 1998 are now producing a total saving for business worth £1.4bn.
This, the BCC says, is evidence that the government’s better regulation agenda is beginning to do its job.
Professor Francis Chittenden, of Manchester Business School, urged the government to make up for lost time and to do more to reduce red tape. “After more than a decade of uncontrolled and often ineffective regulation, government must build on these welcome early signs of improvement by introducing regulatory budgets to contain the flow of new burdens on business,” he said.
Measures which came in for the most criticism were the Working Time Regulations 1999 which the BCC says cost companies £1.8bn per year and Vehicle Excise Duty Regulations, which add £1.2bn to business’ costs per year.
“Businesses are facing the toughest economic environment for a generation. Company cash-flow is being squeezed and unemployment is growing as a result,” said David Frost, director general of the BCC.
“The government needs to get serious about reducing the massive burden of regulation on business. Cutting unnecessary burdens and announcing a moratorium on new regulations set to come in this year, is one way of providing instant and inexpensive help to British firms.”
© Crimson Business Ltd. 2009