Legislators ‘neglecting small firms’, argues FPB

The Government is being urged to prioritise the needs of small firms when drafting new legislation.

The call came from the Forum of Private Business (FPB) and follows the publication of a Government report on the impact of policy-making on enterprise.

Responding to the ‘Thinking Business in Policy’ interim report review, the FPB said it believes legislators devise new policies with large companies in mind. It added that policy-makers often fail to consider the implications that new rules and regulations will have for the UK’s smaller firms, many of which employ very few people.

With small firms typically having less time, money and resources to interpret and implement new legislation, the lobby group warns that SMEs will find it ‘increasingly difficult’ to compete with their larger competitors.

The FPB highlighted the impending Equality Bill as an example of the disproportionate consideration that is given when drafting policies.

While the Government estimates that the average SME will need just an hour to interpret a section of the new legislation, the FPB predicts that a typical business owner who has little experience of complex legal documents will take much longer.

Commenting, the FPB’s Policy Representative, Matthew Goodman, said: ‘We believe that, through improved understanding of the nature of small businesses and by making much more accurate assessments of the implications of the legislation, decision-makers can make informed judgements about the advantages and disadvantages of policies.

‘Policy-makers should also consider how their policies are going to boost the UK economy.

‘It's not enough simply to consider the social benefits of legislation without giving thought to the bigger picture. Many businesses feel they are often seen as those which should automatically pay for attempts at influencing social change.’