January 09, 2012
The moratorium on employment laws for small businesses which was introduced in April 2011 appears to have made little difference in it’s aim to cut red tape with even the smallest businesses avoiding just one obscure rule in the forthcoming equality legislation. Head of Regulatory Affairs at the Institute of Directors has claimed that despite claims from the government that red tape for small businesses would be cut in reality very little has changed. He said: "It's the Emperor's New Clothes. The moratorium exists but it hasn't been applied to anything. Unless it is applied to something it is meaningless." Adding, that unless the Government does more to make the moratorium work they face a “credibility gap”. This view has been echoed by John Walker, Chairman of the Federation of Small Businesses, who said: "The Government has talked a good game on deregulation. But small firms are still waiting to see action on the ground that matches the rhetoric. "Firms have still had to get to grips with big changes in employment law and the moratorium for micro-firms is still to take effect." He also commented on the need for the Government to tackle the increase in EU regulations and not just domestic rules. Abigail Morris, policy advisor at the British Chambers of Commerce is at least sympathetic to the intentions of the government on this issue. She said: "Ministers have good intentions but there is still a volume of law on its way." A spokesman for the Department for Business said: "We are confident that there will be no significant new burdens on micro businesses as a result of measures introduced between July and December 2011."