The CBI has hit back at comments made by Trade and Industry Secretary Stephen Byers last week that the impact of red tape is being exaggerated by employers.
At an EOC conference on the Government’s Work and Parents Green Paper, Byers said, “Claims that red tape is costing business more than £10bn are simply wrong. The majority of costs result from improved pay and conditions, not administrative costs.”
John Cridland, the CBI’s deputy director-general, said, “Employers have largely managed to absorb the cost of additional rights, but they are struggling to cope with the often unnecessary administrative burden.
“It is quite wrong to underestimate the cost. Many firms have to divert resources into administration and so lose business opportunities.”