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Editors Comment: Light touch for small businesses?

I am constantly carping about the pressure of Brussels legislation on all our businesses.
Editors Comment: Light touch for small businesses?

However the pressure, I believe, is greater on smaller companies.

So I was pleased to read in the Financial Times that John Hutton, business secretary (first time I have heard of him) has proposed that companies which employ fewer than 20 people should be exempt from future EU regulations in a drive to cut the burden on business legislation agreed in Brussels.

I have never quite understood why we need the masses and masses of bureaucracy with commissioners and their hangers-on almost running a parallel government to the elected MEPs.

However, according to the FT, there could be a pale, flickering light at the end of the tunnel. EU enterprise commissioner Günter Verheugen (never heard of him either but I bet he gets a huge salary) is hoping to publish a proposed legal framework to help small companies this year.

Part of the regulations would be a cap on the cost to business of new regulation to be introduced in a given period (probably so that bosses can don't have to read and understand and put into practice and can get a little sleep).

The FT added half of all regulations which affect UK business is agreed at EU level.

This is a very worrying statistic.

Hutton spoke to the CBI later and said: 'Every regulation has a cost. Too much stifles enterprise and blunts our competitive edge.' How true this would be if we in Britain had a competitive edge!

Hutton went on: 'It is critical we have the intent and capability to prioritise and simplify essential regulation and eliminate unnecessary burdens wherever they exist.'

The German commissioner wants to create a lighter touch regulatory regime to help smaller companies which he believes have been neglected by European policy makers for too long.

I have no argument with any of this.

However Brussels has proved extensively to me that it is all mouth and no trousers, especially where business - whether large or small - is concerned.

One UK junior minister and one EU commissioner is a long way from relieving the burden of EU legislation.

But Verheugen then spoiled it for me by saying that big companies find it much easier to make their voices heard in Brussels, with direct lobbying or by involvement in formal EU social partner discussions.

To which I counter: do the Brussels bureaucrats ever listen to anything they don't want to hear?

However, I suppose any attempt to curb the excesses of Brussels must be good for British business - or what is left of it.

Paul Braithwaite,

editor
1 May 2008

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