Businesses tired of seeing red
RED tape is now costing the region’s businesses a staggering £5.7bn with a further hike expected in the coming months.
According to the Chambers Burdens Barometer companies were hit with 19 new regulations in 2007/8 costing them £1.75bn.
The two most burdensome regulations in the barometer are the Working Time Regulations 1999, which has cost firms £17.8bn and boasts a recurring annual fee of £1.8bn, and the Vehicle Exise Duty (Reduced Pollution) Amendment, which has cost companies £10.4bn to date with a recurring cost of £1.2bn.
Gary Lumby, president of Leeds Chamber of Commerce, said that although there were some positives to be taken from the survey, red tape and regulation remained a serious financial burden on local businesses.
“In this tough economic climate government needs to start doing more about reducing the massive burden of regulation on business,” he said.
“A starting point would be, cutting unnecessary burdens and announcing a freeze on new regulations set to come in this year, this could provide instant and inexpensive help to local businesses.”
It’s not all bad news however. Although three Acts of Parliament designed to reduce the regulatory impact have failed to make a dent in the number of new regulations and amendments, some 18 regulations introduced since 1998 have helped generate a total saving for business worth £1.4bn.
