Business perceptions provides mixed picture on regulatory burden

A survey of businesses conducted on behalf of the National Audit Office, the Better Regulation Executive and the Better Regulation Delivery Office has provided conflicting evidence on the impact of regulation in the UK.

According to the research, fewer businesses (55%) felt that the overall level of regulation was an obstacle to their success compared to the last survey in 2009 (62%).

The proportion that strongly agreed regulation was an obstacle fell from 35% to 24%. The figure for small businesses was 31%.

But the survey found that there was no difference between responses in 2010 and 2012 in respect of the proportion of businesses stating that there was ‘too much’ regulation.

Half of all businesses reported that there was too much regulation – “significantly higher than the first time this question was asked in 2009,” the NAO said.

The watchdog added that business perception of the government’s approach to regulation, as measured by agreement levels in response to a series of statements, was less positive in 2012 than it was in 2010.

One-third (33%) felt that, overall, complying with regulation had become more time consuming over the last 12 months. “Small businesses (50%) and medium-sized businesses (44%) were more likely to report an increasing burden than were large businesses,” the report suggested.

Chris Shapcott, Director of Regulatory Studies at the National Audit Office, said: "The news that fewer businesses felt that the overall level of regulation in the UK was an obstacle is welcome. But more work needs to be done, particularly to ensure that small businesses feel the same reduction in the burden of regulation that large businesses have."

The Department for Business, Innovation and Skills claimed the findings showed that the burden of regulation was beginning to lift.

It pointed to other findings such as 41% of businesses saying that that the balance of regulation was about right, and that 46% thought that the burden would stay the same over the next 12 months.

Business and Enterprise Minister Mark Prisk said:
“Reducing the burden of regulation for business is at the heart of the Coalition Government’s ambition to make the UK one of best places to start and grow a business. This report suggests that businesses can now see progress, but there is clearly more to do. We are committed to this process.”

The full report can be downloaded here.