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Red tape cost businesses £56 bn

Published On 27 February 2007 at 14:10:31

British businesses have been burdened with a record cost of nearly £56 billion because of red tape, a new report this week shows.

According to figures released by the British Chambers of Commerce (BCC) as part of its Burdens Barometer, the cumulative cost of regulation has increased by £10 billion in the last 12 months - and the growth rate shows no sign of slowing down.

The BCC believes its figures show policy makers have a "long way to go" before they manage to reduce the excess burden for UK business. Francis Chittenden, co-author of the Burdens Barometer, said that "2007 needs to be a year of action not words".

Sally Low, a director at the BCC, commented: "Unless this increase is curbed we risk significant damage to the competitiveness of UK companies."

Complying with the Data Protection Bill was cited by the BCC as a regulation which is exceptionally burdensome, having cost UK businesses £6.6 billion. Working-time regulations - the 48-hour week - and data protection are also contributing factors.

Ms Low added: "Despite talking tough on regulation this year's figures are once again painful reading for business. The UK's growing burden of red tape is unsustainable and economic success cannot be taken for granted."

 

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