Red tape 'could see SMEs call in insolvency solicitors'

Published on 28 May 2010 under category: legal

Red tape could stop small businesses growing, according to one industry expert.

Small to medium-sized enterprises (SMEs), which may have faced calling in insolvency solicitors, could find themselves struggling under the burden of new EU regulation.

According to the British Chambers of Commerce, there were 40 new laws established last year which collectively cost businesses around 88.3 billion.

This is a huge jump on 2008 figures of 11 billion since last year.

More firms could find themselves in need of insolvency solicitors.

Commenting on the figures, Professor Joshua Bamfield, said: "Small companies don't have so many people who can take an interest and make sure of efficiency in their environmental regulations, equal opportunities, and planning controls policy, et cetera.

"When you are small it is vital to direct efforts towards driving a company forward - it is easy to fall into the dangers of all this regulation."

In response to concerns from businesses, the BDO announced last week that it would adopt a one-in, one-out policy towards red tape.

If you require advice on Insolvency please call us on +44 (0)20 7831 0101 and ask for Katy Sillett.