Business News
Masses of red tape is costing British businesses £80bn a year
A new study by the Institute of Directors (IoD) has claimed that regulation and red tape is costing British businesses £80bn a year, more than six times the amount estimated by the Government.
New figures released by the IoD suggest that firms spend an average of 73 hours every month dealing with red tape, the equivalent of one member of staff working continuously on red tape for five and a half months a year.
Miles Templeman, Director General of the IoD outlined: “'This £80bn is effectively being taken out of the UK economy each year due to regulatory paperwork. When the regulatory burden is so large that it typically occupies one employee in every private enterprise in the UK for nearly half a year, it's obvious we have a problem.”
The IoD also warned that over-regulation could pose a threat to competition within British business and is calling on the next Government to address the issue following the general election. It stressed that ministers must reassess the practice on red tape and give companies more freedom to operate.
Miles added: “Unless the next Government changes the way civil servants are evaluated and rewarded, businesses will continue to face an increasing burden of paper work that hinders them from growing and, ultimately, creating jobs.”
