Throughout the recession, all three major political parties vowed to position the small business and SME sector at the center of their economic policy, in varying ways. However, one of the areas both the Conservative and Liberal Democrat Party agreed on is the fact that historically company formation, company registration and the daily operation of running a company, requires to much administration.
It will come as little surprise therefore that at the opening of parliament the coalition government pledged to reduce the amount of bureaucracy involved in running a company and yesterday, with Vince Cable’s promise to reduce bureaucratic red tape for small businesses, it seems like the coalition are standing by their pledge.
According to Cable companies have been held back by the amount of unnecessary legislation regulating small businesses and he has proposed a number of things which will address this situation.
First of all Cable plans to establish a ‘small business’ committee which will investigate the current legislation and cut all things which they feel are holding back UK enterprise. Secondly, he has said that the coalition government doesn’t plan on creating any more company legislation, until all existing regulations have been review and –where necessary culled.