6th September 2010
SMEs urge Government to scrap costly and burdensome legislation
and let them focus on running their businesses
Datchet, U.K. – 6th September, 2010 – Research
published today by IRIS Software reveals that UK small businesses
are concerned that the Government’s agenda will not focus on the
most pressing issues when it comes to protecting their interests
and stimulating growth in the economy.
Small businesses want the Government to focus its efforts around
reducing regulation on the areas of Employment Law and Health and
Safety Law. A third of SME owner-managers cite Employment
legislation as the area of business that most needs a reduction in
Government regulation. The same percentage cites Health and Safety
legislation as the area that the Government should focus on
first.
However, the research, which was carried out amongst UK SME
owners and managers between 23rd and 26th August, reveals that the
majority are strongly opposed to some of the Government’s proposed
legislation affecting SMEs. Only 27% support the Government’s plans
to formalise flexible working hours, whilst only 26% support the
Government’s plans to make pension provision and contributions
compulsory amongst all employers in 2012. The research revealed
little appetite for the Government’s proposed changes to the PAYE
system, with 85% of SME owner-managers stating that the current
PAYE system is satisfactory and does not represent a huge burden on
their organisation compared to other statutory requirements.
On a more encouraging note, small businesses in the UK are on
the whole pleased with the Coalition Government’s efforts to date
to stimulate economic growth and protect entrepreneurship. 57% of
SMEs are impressed with the Coalition Government's efforts to
tackle the challenges facing small businesses in the UK.
Oliver Shaw, Managing Director of IRIS SME
Solutions, commented: “The good news is that SMEs feel that the
Coalition Government has up until now shown a good understanding of
the considerable challenges that they are facing. However, what
this research demonstrates is a worrying disconnect between what
small businesses really need now, which is to be allowed to focus
on growing their businesses and, in some cases, merely surviving,
and the Government’s agenda. Now is absolutely not the time to be
introducing burdensome and complex legislation around flexible
working, pensions and payroll, which will only serve to add to the
amount of red tape which small businesses have to deal with.”
The survey highlights other areas which the Government needs to
address, including access to bank loans for small businesses, with
83% of SMEs claiming that UK banks are not doing enough to help
them, and aligning the education system with the demands of today’s
workplace. Only 11% of those surveyed feel that the education
system in the UK prepares school and university-leavers for the
world of work. Over half (55%) of UK small business owners do not
think that there is enough information, advice and help for
start-up companies looking to develop medium to long-term business
plans
Shaw concluded: “Up until now the Coalition Government has been
making all the right noises about reducing red tape, with its ‘one
in, one out’ approach to new legislation, and improving access to
finance for small businesses. Now it needs to back these words up
with actions.”