FSB: A freeze on new business regulation will create more than 300,000 jobs

The Government must put a stop to all new business regulation and simplify red tape if it is to seriously tackle rising unemployment, the Federation of Small Businesses (FSB) said.

Ahead of the Conservative Party Conference in Manchester, the FSB outlined its proposals for creating and saving more than 300,000 jobs, and called for a moratorium on all new business regulations and a rapid simplification of confusing bureaucracy.

A survey of FSB members showed that nearly one in three businesses (27 per cent) that wanted to expand said they were too scared to do so, because they were put off by complicated regulation. Of those businesses planning to down-size or close, 50 per cent said their decision was strongly influenced by the regulatory burdens they faced.

According to the Government’s own figures, 60 per cent of businesses listed regulation as an obstacle to success. Based on these statistics, the FSB estimates that removing these regulatory obstacles could create more than 258,000 new jobs and save more than 55,500 from being lost.

In a new policy paper entitled Regulatory Reform – a route to economic recovery, the FSB is proposing an overhaul of the UK’s regulatory structures, calling for:

– A moratorium on business regulation: to boost the chances of job creation, the Government must halt all new regulation during the recession and for the first 18 months after recovery.

– Accelerated simplification of current laws: employers are currently confused and put off by maternity and paternity law; discrimination law; and health and safety legislation. All of these must be immediately simplified.

John Wright, National Chairman, Federation of Small Businesses, said:

“We cannot and must not underestimate the burden that unnecessary regulation puts on small businesses. Around half of all firms planning to close or down-size were influenced in that decision by the heavy impact of regulation. However, we know that small firms want to employ more staff and the Government should be making it easier for them to do so, especially as we pull ourselves out of recession and into recovery.

“The FSB is urging the Government to give the UK’s regulatory environment a strategic overhaul, to provide it with what will amount to a second economic stimulus, to boost growth and employment.”

1. The FSB is the UK’s leading business organisation with over 215,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at http://www.fsb.org.uk

2. Policies in this release are expanded in the reports: Small Businesses, Big Employers and Regulatory Reform – a route to economic recovery, which are available at www.fsb.org.uk or from the FSB press office.

3. The FSB’s reception at the Conservative Party Conference will be held in the DODs marquee 1, Manchester Central, on Monday 5 October 2009 at 9.30pm. Speakers include Rt Hon Kenneth Clarke QC MP Shadow Secretary of State for Business; and Mark Prisk MP Shadow Minister for Small Businesses; and the Federation of Small Businesses National Chairman, John Wright.

4. The FSB’s stand will be at 54: Central Hall at Manchester Central from Monday 5 October to Thursday 8 October 2009. The FSB will also be giving delegates the chance to win a tin of jelly babies representing the country’s small business workforce by taking the ‘Big Small Biz Quiz.’

5. Representatives from the FSB will also be talking at other Fringe events: John Wright will be speaking at the New Statesman and Alliance Sector Skills Council Fringe event at 12.30pm on Monday 5 October at the Palace Hotel; John Wright will speak at the No Sale: No ID Fringe at 12.30pm on Tuesday 6 October at Gio Restaurant, 5-7 Lower Mosely Street, Manchester; John Wright will speak at the FSB/Friends of the Earth Fringe on the role of small businesses in tackling climate change at 8pm on Tuesday 6 October at Manchester Central, Charter 4; Andrew Cave, FSB Head of Policy will speak at the Adam Smith Institute/Finance and Leasing Association Fringe at 12.30pm on Wednesday 7 October in the Radisson Edwardian Free Trade Hall; and Stephen Alambritis, FSB Head of Public Affairs will speak at the Bow Group/IOSH Fringe event on creating healthier workplaces at 7.30pm that same evening.

Contacts

Stephen Alambritis: 020 7592 8112 / 07788 422155
Sophie Kummer: 020 7592 8128 / 07917628998
Prue Watson 020 7592 8121 / 07825 125695
Marc Shoffman 020 7592 8113 / 07595 067068

For regional FSB contacts please go to www.fsb.org.uk/regions