Regulatory exemptions are often granted to small and medium-sized enterprises (SMEs), which the EU regards as being below 250 employees, but The Business Perception Survey Report 2020 highlighted that many medium-sized businesses (those between 50 and 249 employees) still identified that they spent an average of over 22 staff days per month on dealing with regulatory and reporting requirements, which were a significant burden on business operations, and over half of businesses reported that the total cost of complying with regulations had increased over the last 12 months.
What are the effects of Red Tape regulatory changes on SMEs?
To boost business productivity and supercharge economic growth, Prime Minister Liz Truss has announced plans to widen exemptions on future compliance with such regulatory requirements for businesses with fewer than 500 employees.
It is anticipated that the change could free an additional 40,000 businesses from future regulatory red tape, resulting in less paperwork for businesses and helping to reduce business expenses.
The changes are intended to be proportionate, ensuring that workers' rights are protected, but no real guidance has been given by the government on this.
The change on employee threshold took effect from October 3rd to all new regulations in the pipeline, extending to those under current and future review to include EU laws, but we must await further clarity from the government on this.
The article is for general information purposes only and should not be relied upon as authoritative and is correct as of October 3rd, 2022. However, should you require any further assistance on the matter, please do not hesitate to call our advice-line team on 01455 852028.
