The balance between the needs of regulation and the encouragement of enterprise has crashed by 36% over the last year, according to a recent report.
The result of the study followed hot on the heels of the launch of 'Ban the Bumph' - a venture designed to slash unnecessary burdens on business - by Cabinet Office Minister Mo Mowlam this week.
In addition, the government announced plans in this morning's Queen's speech of a Bill which is aimed at making it easier for measures to crack down on red tape to be introduced.
The study, 'SME Finance and Regulation', was carried out by the ICAEW Enterprise Group to gather members views on the difficulties facing SMEs.It found excessive regulation continued to be a burden to SMEs with the annual cost of implementing new legislation estimated at as much as £10,500 for medium-sized businesses.
Peter Burton, chairman of the Enterprise Group, said: 'It is no surprise that the burden of regulation still weighs heavily on small businesses. If the government do not amend their tactics this could turn into a home defeat.'Burton welcomed the Government initiative and said he 'welcomed any move to improve the regulatory framework.'
But he warned: 'We will have to wait and see what it actually delivers.'The research also found further failings in the regulatory regime as 45% of businesses said the prescriptiveness of new regulations had worsened and a further 48% said the care with which regulations are considered before being introduced had worsened.
CLICK ON THE MO MOWLAM ICON TO THE RIGHT TO READ ABOUT THE GOVERNMENT'S NEW CAMPAIGN AGAINST RED TAPE AND ADD YOUR VIEWS.
Using photocatalysts to convert carbon dioxide into usable energy such as methane or ethane
Trained on curated data from Moorfields Eye Hospital, the neural network also shows clinicians how it reached its judgement
Yokohama National University demonstrate technology that could lead to a fault-tolerant universal quantum computer
Top-of-the-range Threadripper 2990WX now available from Scan, Ebuyer, Overclockers, Novatech and Amazon