Business Management zone

Chancellor blamed for burden of red tape

Darling was cited as the key figure behind increasing form filling and compliance by 40% of small business respondents to a poll by accounting software firm Kashflow.

In what was described as the first 'Red Tape and Bureaucracy Awards', 23% blamed the European Union, while Darling's predecessor in the Treasury and now prime minister Gordon Brown received 21% of the votes.

In other findings, the research showed red tape continues to cost small company owners time, money and stress.

Three quarters said bureaucracy had directly affected their company with 94% believing there is now even more red tape than 10 years ago, suggesting government attempts to cut down on legislation have in fact had the opposite effect.

Duane Jackson, managing director of Kashflow, claimed the government's 'one size fits all' approach to regulation is not working.

"Smaller businesses may not have the appropriate funds or access to accountants, lawyers or human resource professionals," he said.

"Consequently, staff members and managers are being lumbered with the burden of processing VAT and researching new rules and regulations regarding health and safety, number of work hours permitted, non smoking rules and so on.

"Added to this, is the pressure of constantly updating this information, just to avoid a hefty fine for non-compliance."