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Government policy hits small firms

The UK small business community is spending 15 per cent more on taxes, levies and employment obligations than in 2011, according to FSB’s latest Impact of Government Policy Index (IGPI). The average UK small business spends more than £480,000 a year on these interventions.

Labour-intensive industries are hit particularly hard, with smaller businesses in the construction and manufacturing sectors suffering a 28 per cent
and 19 per cent increase.


Mid-size businesses saw policy-linked costs rise faster than their smaller peers. Firms with 10-49 employees saw a 20 per cent rise; businesses with 50 or more staff saw a 37 per cent increase.

“Government officials scratch their heads over why small UK firms don’t scale-up at the same pace and frequency of small businesses elsewhere,” said FSB National Chairman Mike Cherry. “Clearly, the burden placed on business owners as they transition from running a small firm to a mid-sized one needs to be looked at.”