BCC red tape audit invites contractors to flag regulation gripes

A 'Red Tape Audit' by the British Chambers of Commerce has invited independent contractor businesses to join its members and other businesses in the UK in submitting their concerns over Government regulation that hinders their operation.

The BCC will conduct the audit to highlight major bottlenecks and regulatory 'dead ends' via a specially commissioned think tank charged with looking at positive and innovative ways of changing the Government's culture to regulate.

The BCC's 'Think Tank on Regulation,' will consist of academics, policy makers, business leaders and BCC members and will advise the Government on practical ways of reducing the regulatory load on companies. It will also produce a series of short papers over the coming year to outline alternative solutions towards a 'lighter touch' to regulation.

It is inviting all businesses to give their opinions on the specific regulations that are holding them back; including employment legislation, tax, statistics gathering, environmental, EU regulations, payroll burdens and IR35.

The BCC has set up a 'Burdens Barometer', which lists IR35 as being a primary contributor to businesses' anger over regulation. It lists IR35 as having: one-off administration costs of £17.5 million, recurring administration costs of £6 million, recurring financial costs of £475 million between 2000-01 and £300 million thereafter and puts the total cost of IR35 (by May this year) to business at £523.5 million.

Sally Lowe, a co-ordinator of the BCC regulation audit, said: "We would welcome feedback from IT contractor businesses over their concerns as the knowledge-based sector is crucial to the UK's international competitiveness in terms of e-commerce. IT forms a significant part of the report we are preparing. We appreciate the nightmare IR35 poses to contractors and we frequently see it cited as a major problem by our members."

Other areas the Think Tank will focus on are:

• The impact of regulation from the EU on UK business;
  
• Exemptions for small businesses from some regulations;
  
• Compensation for small firms for Payroll Administration;
  
• Introduction of Shadow Regulatory Budgets;
  
• Improving the way Government departments estimate the cost of red tape on business;
  
• The way regulations are enforced and looking at ways of changing the culture to regulate;
  
• The role of information communications technology in reducing the burden of regulation.

Philip Ross, PCG spokesperson, said: "The PCG shares many of the aims of the British Chamber of Commerce to reduce unnecessary red tape that is holding back business. IR35 is at the top of our list and we will be working with the BCC on this.

"It is stopping firms from growing, reducing the resources for training and development and is driving people out of contracting. Indeed the missed opportunity costs of contractors growing their businesses may be the most telling."

Bill Midgley, Deputy President of the British Chambers of Commerce, said: "Complying with all the different demands placed on business from regulation has cost business £15.6 billion since 1997. If we are to be more competitive, productive and innovative we must look long and hard at the way we regulate business and the way regulation is administered.

"The launch of the BCC's Think Tank on Regulation marks an important step forward in this drive to find practical workable ways to reduce this burden and ensure that UK business is not being held back."

David Lennan, Director General of the British Chambers of Commerce, said: "Today the BCC's new Policy Think Tank on Regulation will be setting the policy agenda to change the way we regulate, enforce and operate. Following the commitments given in Barcelona for faster implementation of the Small Firms Charter and for delivery to the Commission's Regulatory Action Plan now is the time to move the UK's deregulatory agenda up a gear. Over the course of the next few years the BCC will be working on a series of short, mid and long-term policy proposals aimed at turning around the culture to regulate first and think about the impact later."

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Richard Powell, UKTECH