Red tape 'costing UK firms £88.3 billion'
Commercial insurance
26th May 2010
Bureaucracy is continuing to place a costly burden on companies in the UK, a new study has revealed.
The report by the British Chambers of Commerce (BCC) estimates that red tape alone costs insurance for business customers £88.3 billion, an increase of £11 billion since 2009.
In its 2010 Barometer, the organisation claimed 40 new regulations have been added to the burden on companies since last year, with a new recurring cost generated of more than £1 billion.
Some of the most expensive of these are identified by the independently compiled study from the London and Manchester Business Schools as the Euro 5 and 6 Light Duty Vehicle Emissions Standards and the Community Infrastructure Levy.
BCC director-general David Frost commented that the government needs to "play its part by putting the brakes on the relentless flow of red tape", as firms drive recovery and create jobs.
In its Coalition Agreement, the Lib Dem-Conservative Government outlined plans for business, which included introducing a "one-in, one-out" rule for new regulations and targeted inspections.
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