Measures to reduce the cost of red tape to employers need to be introduced by the Government in its budget if it is to convince UK firms that it is sensitive to business concerns.
This is the message from the British Chambers of Commerce, which has called on the Government to reform the regulatory environment and reduce business taxation in its 2001 budget submission.
The submission argues for a commitment from the Prime Minister to present an annual regulatory budget to highlight the cost and benefits of new regulations.
Chris Humphries, director general of the BCC, commented, “The strong message coming from business is that the sheer quantity of unnecessary red tape is damaging our economy and stifling enterprise, job creation and growth.
“Ahead of an expected election firms will be looking for the Chancellor to do more than tinker at the margins. Government must adopt and engage in a radical approach to regulatory reform.”
Humphries also raises concerns about the impact of the rising tax burden on business productivity, pointing to OECD figures that show UK direct taxes on businesses are almost 50 per cent higher than those in the US.
By Ben Willmott