Research by the Institute of Directors claims that new regulations will cost UK businesses over £1bn.
The “time off to train” requirement alone would cost a hefty £555 million, while the Business Rates Supplement Bill could cost nearly £320.
The IoD’s Director General does not believe that benefits from those initiatives would offset the costs to employers. Commenting on the research, Miles Templeman said:
“Not long ago, the Government was talking about a temporary freeze on new regulation as a means of helping businesses through these incredibly difficult times. However, despite the business friendly rhetoric, the Government’s own figures indicate that Ministers are in regulatory overdrive. The introduction of £1billion of extra employment entitlements, pay audits and business rate supplements at a time of acute difficulties for business is a massive error.
“The Government has urgently to rethink policies like the Business Rate Supplements Bill and proposals around Time-Off Entitlements, if it is really serious about helping businesses through the recession. The economic impact of these regulations will be felt in lost jobs.”
A spokesman for the Department for Business, Enterprise & Regulatory Reform responded:
“Our ambitious programme to cut the costs of regulation, for example on business, is already achieving positive results,” said a spokesman. “The government has a programme to reduce red tape, with a target to cut administrative burdens by 25 per cent by May 2010. To date, around £1.9 billion of savings have been delivered.”
Paul Gray is an entrepreneur and digital publisher who creates online publications focused on solving problems, delivering news, and providing platforms for informed comment and debate. He is associated with HRZone and has built businesses in the HR and professional publishing sector. His work emphasizes creating industry-specific content platforms.
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