FSB Warning of new Business Laws

The Federation of Small Businesses (FSB) is urging the Government to delay new laws such as extending flexible working to parents of children up to age 16, which they say could cost small businesses nearly £800m a year. They are asking the Government to hold off on passing new laws on the next business law start date, because it will only put more financial pressure on already-struggling small businesses.

In a recent poll of FSB members, one in four said they believe small firms will pull the UK out of recession. However, the FSB is concerned that they will be unable to do so, or to retain or employ extra staff if they are burdened by new legislation. The FSB is calling for the Government to review the introduction of the following laws:

- Extending flexible working to parents of children up to the age of 16;
- Increasing staff holidays by four days;
- Switching gas watchdog from Corgi to Capita;
- Changes to Home Information Packs; and
- Extra Waste Control measures.

The FSB believes that a recession is no time to be making changes to existing laws, which will have such an enormous financial impact on small firms.

With two common commencement dates each year, the FSB wants to see a moratorium on new employment law until October. The FSB has urged the Government to take a “common sense approach”, and assess the economic situation and consequences this could have on small businesses before new legislation comes into effect later this year.

John Wright, National Chairman at the Federation of Small Businesses said:

"The cost of new laws to small businesses this year is huge. Small businesses should be concentrating on keeping jobs, rather than spending time and money carrying out paperwork.

"The FSB demands that the Government reconsider all regulation that will cost small firms and help our small business community thrive. This is no time to hold small businesses up with extra costs and burdens. The Government should wait until October to see if the economy is in a stronger position to cope with this added pressure.

"In these tough economic times, small businesses are already battling with red tape; with the burden and confusion of existing legislation. In 2008, we saw 57 new or altered pieces of regulation affecting small companies. A similar number is expected this year. The small business sector is confident it can help pull us out of the recession. Suspending legislation that could cost small firms up to £800m will allow them to concentrate on getting the economy back on track."