Monthly Archives: October 2013

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EU Legislation for British Firms Increasing

Legislation

Campaign group Business for Britain have released figures which, for some, have raised concerns about the rate of increase in EU legislation. According to the newly published data, the number of new business regulations sanctioned at EU level in the past three years is just short of 3,600.

Small and medium sized enterprises (SMEs) in particular have expressed concern about their growth being hindered by large amounts of legislation that just does not seem necessary. This fact seems particularly pertinent in light of David Cameron’s stance on the role of small businesses in the British business environment. The Prime Minister has describe SMEs as holding a central role in the country’s economy, and has openly expressed a desire to make expansion easier for new startups.

These new regulations, introduced in the period since May 2010, equate to a combined total of 13 million extra words added to the legal bureaucracy surrounding British business. Reading the legislation from start to finish would take companies an estimated 92 working days.

Business for Britain’s Chief Executive, Matthew Elliot, said that the issue needs to be addressed urgently. He described the EU as having “an addiction to red tape.”

Elliot went on to say that the fact regulation is needed for a single market to function properly is undeniable. However, he said that the amount of new legislation being sanctioned, and the rate at which new rules are added, “is a serious restraint to British Business.”

Jo Swinson, Business Minister, recently made an announcement detailing a number of proposed reforms to the legal environment surrounding UK businesses. These changes, it is claimed could positively impact upon the situation of an estimated 3.2 million companies across the UK.

She said that the main purpose of these reforms is to get rid of unnecessary obstacles within the administrative process. This is intended to allow SMEs to spend less time and effort on paperwork, and instead focus on expanding their operations and creating innovative new ideas. Ms Swinson suggested that this would contribute to the development of a stronger British economy.

A panel of leading businesses – commissioned by the government and including major firms such as Marks & Spencer – has also recently revealed findings in the area of unnecessary EU business regulation. The panel identified 30 specific EU-sanctioned regulations which they believe should be discarded, in order to create an easier environment for British businesses.