UK SME’s call for reduction in red tape

Cutting red tape should be one of the most important government priorities when it comes to business, according to SME owners in the UK. In a new survey commissioned by Zurich the SME insurer it was discovered that this is their number one concern followed closely by improving access to finance and reviewing the employment legislation.

Some regions showed an increased concern about cutting red tape in the business world with 76% of the SME’s in the Midlands listing this as their top concern and another 76% listing it as their top concern in the North of England. In London only 60% of SME’s viewed this as a top concern, and while it may come in slightly below average this is still a recognizable amount.

Sector differences were also evident in the survey with manufacturing companies the most concerned about reducing red tape (87%) followed by construction at 75% and then financial services at a still impressive 67%. When questioned farther SME owners listed their top regulatory concerns which in order are employment regulations, health regulations, and pension regulations.

There was an emphasis placed on employment regulations by the owners included in the survey as it found that one out of every five SME’s view legal proceedings and employment tribunals as a real threat to their business.

Director of the SME division for Zurich Richard Coleman stated that in order to make sure that SMEs will continue to grow within the UK there will have to be a renewed focus on creating a regulatory environment that small businesses will be able to deal with. He added that most businesses recognise the need for changes in regulation, but SME’s are often the ones to be hit by regulations the most.