Help Cut Red Tape

Bogged down by bureaucracy? Floundering in a sea of forms? If you’re a business owner, red tape can present a frustrating set of hoops to jump through. However, a new government initiative aims to reduce this burden by opening up a dialogue with business people to discover which regulations are working and which aren’t, as well as what should be scrapped, simplified or done differently.

The Red Tape Challenge aims to get rid of some of the 21,000 rules that the government believes are holding back businesses. Every few weeks regulations relating to a specific sector will be published on the website (see address at bottom of article), along with general regulations that relate to all sectors, such as those on equality or health and safety. People are then free to visit the site and pass comment. Their thoughts will be collated by officials and ministers will then have three months to decide which regulations they will scrap. The process will run from April 2011 until April 2013.

Small firms in particular are struggling with the problem of excessive regulation, and a new Chambers of Commerce report found that a significant proportion would employ more staff if this was reduced – which would ease the burden on the economy and help to lift the country out of recession. The survey says that employment legislation, such as pension requirements, dismissal rules and sickness absence rules, deter sole traders from taking on their first employee.

Paul Carvell, senior partner at Stewart Fletcher & Barrett and incumbent chair of the north branch of Coventry & Warwickshire Chamber of Commerce, comments: “This scheme represents exactly the type of two-way discourse that I have long argued for in talks with MPs and the business community. It is an extremely positive step forward, and I for one welcome it and urge business owners to get involved and make their voices heard.”

Help cut pointless rules and regulations by telling the government what YOU want to see changed: http://www.redtapechallenge.cabinetoffice.gov.uk/home/index/

Bribery Act – Be Prepared

Do you have a clear and effective anti-bribery policy in place? If not, whether your business is big or small, you’d be best advised to look at this as a matter of urgency, as the new Bribery Act came into force as of 1st July this year!

This legislation represents one of the biggest changes to UK laws regarding business and commerce for decades, and getting it wrong could end up costing you a lot more than you bargained for – as the maximum penalty for bribery will rise from 7 to 10 years imprisonment, and/or an unlimited fine. However, if a company can demonstrate that it has adequate procedures in place for the prevention of bribery, the fact that it is using its best endeavours to comply with the law will offer a good degree of protection.

The Bribery Act replaces existing anti-corruption rules, and introduces a new corporate offence of ‘failure to prevent’ bribery. This means companies that cannot demonstrate that they have implemented adequate procedures to prevent corrupt practices could be exposed to unlimited fines as well as other collateral consequences, such as debarment from government business.
This is yet another layer of red tape for beleaguered businesses to negotiate, but once again there is no excuse for not knowing it. Stewart Fletcher & Barrett is committed to trying to get the message across to government that red tape is ruining businesses. Indeed, senior partner Paul Carvell has raised these concerns with MPs, and a new government initiative aimed at cutting red tape has been launched.

He explains: “What you need to know is that the definition of what constitutes bribery is actually far wider than ever before, and encompasses things that may have previously appeared innocuous. It is vital for businesses to realise that bribery is a lot more than just a legal issue – it demands a holistic approach that includes ensuring you have the right processes, controls and company culture. Unfortunately, this is likely to represent yet another cost to businesses.”

If you would like to find out how we can help you minimise that cost, call us on 02476 384171.

To add your voice to the government initiative, visit the website: http://www.redtapechallenge.cabinetoffice.gov.uk/home/index/