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UK businesses alarmed by red tape burden

Article Date:  Oct 03 2006


The Forum of Private Business (FPB) has warned that new laws set to come into force this month could stifle growth opportunities for many small businesses.

According to the FPB, which represents the interests of 25,000 UK-based private businesses, changes in age discrimination laws, fire regulations, the national minimum wage and maternity rights may create unwelcome financial pressures for senior executives.

FPB campaigns manager Victoria Carson says: ‘Firms are facing the prospect of having to review their practices in order to come into line with fresh age discrimination laws and fire regulations.

‘That alone will be a costly process to administer and yet another distraction from running their business. Failing to bring themselves up to date could cost them in terms of an employment tribunal or a hefty fine.’

Samantha Bevan, a member of the FPB and managing director of Anchorstone, which specialises in residential care for the elderly, claims that during the past five years new legislation has pushed staffing costs up by 20 per cent. She adds that the increase does not take the ‘the national minimum wage into account’.

Carson has called for the Government to review the impact of the new regulations in the first quarter of 2007.

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