Regulatory burden 'restricting small retailers' growth'
Commercial insurance
28th May 2010
The burden of regulation is affecting the ability for small retail companies to expand their operations, an expert has claimed.
According to the director of the Centre for Retail Research, plans by the government to reduce red tape are to be welcomed, while ministers must look carefully at how rules from the European Union are interpreted and "put into action".
Professor Joshua Bamfield explained: "When you are small it is vital to direct efforts towards driving a company forward - it is easy to fall into the dangers of all this regulation."
He noted smaller firms are faced by tax charges of between two and three per cent of their turnover and do not have as many people in place as larger companies who can ensure regulations relating to issues such as equal opportunities, the environment and planning are adhered to.
Professor Barnfield's remarks come after the 2010 Barometer from the British Chambers of Commerce estimated the cost of regulation to companies had increased by more than £11 billion in the past year to £88.3 billion.
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