Businesses with fewer than 50 employees are to benefit from the same regulatory exemptions that currently apply to smaller businesses with fewer than ten employees. From next year, firms will undergo an assessment process to exempt them from new regulations if there is any evidence they will result in “disproportionate burdens” that could stunt business growth.
Announcing the extension, business minister Michael Fallon said small businesses are vital in creating new jobs and balancing the economy.
Whitehall departments will be required to consider a range of “mitigation strategies” before introducing new legislation. They will include providing extra time for businesses to comply with new regulations, simplifying record-keeping requirements and varying regulations according to the size of business.
Fallon, charged with fulfilling the government’s election pledge to reduce red tape, said: “On my watch, new regulations will now only extend to small businesses if they are essential. Where not fit for purpose, they will be reformed or binned.”