While the Liberal Democrats have welcomed plans outlined in yesterday's Queen's Speech to simplify company law, it warns that Ministers must do more to reduce the regulatory burden on small firms.
Lib Dem Brian Cotter MP, small business spokesman, says that the 'think small first' principle must be extended beyond the field of company law and applied to all regulations that affect small businesses.
He says: “With small businesses now spending around six hours a week on compliance, it is imperative that the Government re-assesses its entire legislative approach towards small firms and sets entrepreneurs free from the red tape that is currently strangling innovation.
“The Liberal Democrats would have implemented Bills to trim bureaucratic waste by abolishing the DTI and introducing sunset clauses on new regulations, in order to remove outdated requirements from the statute book.
“The cost of compliance could also be eased by introducing a small business tax relief on form-filling and by scrapping all unnecessary regulation.”