Government action to save small firms £40m

Published on Friday, 04 March 2011 16:16
Posted by Scott Buckler

No small firm will have to have independently audited accounts any longer, Business Secretary Vince Cable announced today, saving 42,000 businesses £40 million per year

One of the barriers to growth is the burden of regulation. It takes up time and stops business growing and that means our economy does not grow.

The Business Secretary outlined changes to regulation in one area which is a massive burden to business – producing accounts. Small businesses in particular often suffer the most under the burden of bureaucracy.

Business Secretary Vince Cable said:

It’s important that we free small firms up so they can grow and drive the economy. The changes I have announced today mean that small firms will be able to concentrate on growing and taking on more people instead of paperwork.”

The Government recognises the need for high standards in audit and accounting. But some areas could do with reform so we are taking action in three areas:

  • Firstly the small company audit and account rules are stricter in the UK than is required by EU law;
  • Secondly for even smaller businesses (with less than 10 employees) Government will push for exemptions to remove the requirement to produce two sets of accounts;
  • Thirdly for medium sized businesses Government will push for EU restrictions to be lifted so that they no longer need their account independently audited and;
  • Finally, Government will look at relaxing the audit and accounts rules for subsidiaries.

In a speech last night the Business Secretary spoke about the importance of growth. He also spoke about the importance of the Government’s growth review which will make sure that every part of Government is doing all it can to support growth, getting out of the way when it needs to and only intervening where there is market failure.

Source: ©BIS

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