16-07-10 10:14

One in six firms see regulation as biggest challenge

Around half of businesses don’t think that local authorities understand their sector well enough to regulate them, according to the Business Perceptions Survey 2010 of 2,000 businesses, carried out by the Local Better regulation Office (LBRO).

According to the survey, more  than half of businesses feel the overall level of regulation in the UK is an obstacle to their success; with one in six businesses rating complying with regulation as their single greatest challenge.

However, the jointly commissioned study by LBRO and the National Audit Office (NAO)  found business believe the purpose of locally enforced regulation is clear; and what is expected of them in order to comply is straightforward to understand. Respondents agreed that most regulation is fair and proportionate. The survey also shows evidence of a growing partnership approach between business and local authorities.

However, the cost of complying with regulation is significant, with a quarter of businesses employing at least one person to deal with a specific area of locally enforced regulation.

The survey found that 38% of businesses are not confident that local councils would take a consistent approach to enforcement.

31% of businesses think that different local councils do not take a joined-up approach to regulation.  Large businesses are less confident than other businesses that local councils are consistent and less likely to think that different local councils take a joined-up approach to regulation.

The majority (82%) of survey respondents said they considered the role of local council regulators as both to enforce the law and to provide advice. This is an increase on the 2008 LBRO/Mori survey which found 75% of business felt that providing an advisory service was important."

LBRO Chairman Clive Grace said: "Locally enforced regulation such as food safety, consumer protection, fire safety, health and safety is essential but it can have a significant impact on business growth. The way local regulation is enforced is just as important as the rules, and there serious concerns about the cost to business of dealing with it.  

"However, there are positive signs from this research and other studies. There is evidence of a growing partnership between business and local authorities, which is good news and shows that the commitment to better local regulation is beginning to pay off. “