Category: Employment Law, Taxation and Legislation for Contractors

The government's proposals to slash red tape are welcome news for contractor umbrella companies and other small firms, the Federation of Small Businesses (FSB) has said.

According to figures from the FSB, nearly a third (27 per cent) of small businesses that want to expand said the proposed increase in regulation makes this difficult.

In the continuing difficult economic times, costly legislation should be a last resort, the body said.

Business secretary Dr Vince Cable outlined plans to simplify red tape, which include a "one-in, one-out" rule and the creation of a new Cabinet Star Chamber to drive the reduction in regulation.

"Regulation has long been stifling business growth so these plans to put an end to the excessive legislation that choke small businesses is welcome news," said Mike Cherry, FSB policy chairman.

"It is a real victory that our calls to simplify the regulation system have finally been heard."

The Warwick Business School has advised firms that there are six key factors to being successful in the current climate, including flexibility, marketing and human resources planning.

Posted by Daniel Frost