Red tape still ‘suffocating’ business groups

News Article - 28 April 2011
Category: Business

Exhaustive Government legislation continues to suffocate entrepreneurs looking to save time on financials processes.

Jonathan Friedman, co-founder and finance director of Beige Plus, a luxury clothing retailer, struggled to the end of the taxman's online advice on VAT repayments only to read a disclaimer that bizarrely informed him not to rely on information given to him by HM Revenue & Customs.

"I couldn't believe what I read. It's almost funny, if it wasn't so serious," said Mr Friedman.

It was this uncertainty and red tape that Prime Minister David Cameron was looking to eradicate as part of the Red Tape Challenge unveiled earlier this month.

But most businesses are yet to engage with the concept that allows business owners to log on and read up-to-date regulations as well as provide opinions on which laws work and which laws should be amended or scrapped.

According to the coalition Government as many as 6,000 suggestions have already been received by UK businesses taking part in the Red Tape Challenge, as UK firms seek to flag up unpopular regulations.

The first stage of the Red Tape Challenge is aimed at addressing unnecessary bureaucracy within the retail industry. The programme will then turn its attention towards hospitality, food and drink and manufacturing sectors.

Dr Kevin Hawkins, a retail sector champion, said: "The response so far has been outstanding, but make no mistake this is an opportunity that is too good to miss. For the first time the Government wants to hear from those at the sharp end of the complex, sometimes overwhelming, amount of regulation.

"Tell us about those rules that really waste your time and money or better still suggest ways of tackling the issues that will make life better for you and your customers."

Meanwhile an HMRC spokesman responded to Mr Friedman's outburst by revealing the HMRC's online information was meant as guidance only and that businesses should call the HMRC helpline for additional assistance.

Article keywords: Jonathan Friedman, Beige Plus, VAT, HM Revenue & Customs, HMRC, David Cameron, Red Tape Challenge, manufacturing sector, Dr Kevin Hawkins

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »