Business secretary Vince Cable has pledged to remove the need for independently audited accounts for tens of thousands of small businesses.
The auditing changes form part the government’s overall growth review and come at the same time as CBI calls for economic growth in the forthcoming Budget.
While still at the consultation stage, the auditing proposals are expected to save 42,000 small firms up to £40m per year.
The government has identified accounts production and regulation as one of the greatest burdens to small business.
Cable said: “It’s important that we free small firms up so they can grow and drive the economy. The changes I have announced today mean that small firms will be able to concentrate on growing and taking on more people instead of paperwork.”
The government is taking action in the following areas:
About Robert Lovell
Business and finance journalist