Include ‘onerous’ tax system in red tape review, urges FSB » SMEInsider

Include ‘onerous’ tax system in red tape review, urges FSB

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The Federation of Small Businesses has welcomed the government’s measures to achieve its £10 billion red tape cutting target, but is urging ministers to make sure they include a reduction in tax burden for small firms.

Announcing the replacement of the ‘One in, two out’ rule for UK regulations with a ‘One in, three out’ system, business secretary Sajid Javid said it “raises the bar and will help drive delivery” of the target, as well as helping to build a more productive nation.

Javid also launched the Cutting Red Tape review, aimed at examining the unnecessary burdens local authorities place on businesses to save both parties time and money.

But while the FSB is in favour of the reduction in bureaucracy, and the review of local councils, it said there is more to do.

 

Challenging times for SMEs

Sandra Dexter, FSB national vice chairman, said: “Our members are right behind the drive to cut burdensome red tape. They particularly support the setting of stretching targets, including the idea of requiring £3 of savings for every new £1 of regulatory cost.

“This will help as small businesses are increasingly under pressure from a series of significant new challenges like the introduction of the National Living Wage and pensions auto-enrolment, all of them driving up the cost of doing business.

“However, there is still plenty of room for improvement. [The] review excludes the complex and burdensome tax system, the most often cited example of onerous red tape highlighted by our members.

“FSB calls on Ministers to bring tax measures into the scope of future reviews, as the UK’s small businesses want to see simplification of the tax system. Overall, deregulation should be proportionate, based on robust evidence, and with a clear small business focus to ensure it does not just benefit larger firms.”