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The Government’s pledge to slash red tape for business is still a complete failure – more than two years after the then Chancellor Gordon Brown promised to light a regulatory “bonfire.”

 

And companies in the South West have no faith that his successor Alistair Darling will make any significant difference, according to the latest survey on red tape from Top 50 accountancy firm Bishop Fleming.

 

The survey reveals that not one company believes there is less red tape affecting their operations now than at the time of Mr Brown’s promise to lessen the bureaucratic burden.

 

The research shows that in most cases businesses feel that there has been an increase in regulation.

 

Brian Payne, Chief Executive at Bishop Fleming, said the findings were a huge disappointment for the business community in the region, which was hoping to see an improvement in the situation.

 

“There is one plus-point highlighted in our latest study – companies say complying with red tape is not costing them quite so much financially – but in most of the key areas the position remains pretty bleak,” he said.

 

“What is particularly worrying is that despite all the very public pronouncements there is such a lack of confidence amongst our companies that there is any progress around the corner.”

 

The latest red tape survey reveals that approaching a quarter (23 per cent) of firms say they have noticed no difference, with 77 per cent claiming that red tape has actually increased over the last year – around the same level as the previous survey.

 

Almost 60 per cent of respondents say they are having to spend “significantly more” time dealing with regulation – about the same figure as six months ago.

 

Two out of every five business owners in the region say that red tape accounts for up to 10 per cent of their own working hours and 13 per cent claim the figure is more like 20 per cent – double the figure of six months ago.

 

“This underlines the view that not only are the promises of a cut in red tape not being kept, the situation for many is getting worse,” said Brian Payne.

 

“In the current economic climate, it is more important than ever that Whitehall does not put barriers in the way of business and that owner-managers are not diverted from their core operations by these non-productive issues.”

 

Employment regulations remain the biggest red tape headache for 38 per cent of businesses in the South West, although the figure is down from 46 per cent six months ago, and 58 per cent at this time last year.

 

Regulations affecting business property come next and show a slight increase at 25 per cent. The other main concern involves payroll issues, which were quoted as the major worry of 19 per cent.

 

Around 10 per cent of those questioned quoted corporate management rules and the same percentage put specific regulations affecting their sector at the top.

 

The same problems headed the list of the areas of red tape which businesses would like to see abolished or at least simplified.

 

Employment (39 per cent) was the major target, followed by property (26 per cent) and payroll (22 per cent).

 

“Over the period we have been carrying out these surveys, these subjects have remained the main worries and there is plenty of evidence for the government to work on, if only they were prepared to do so,” said Mr Payne.

 

Meanwhile more companies in the South West than ever appear to be left to their own devices when it comes to finding out about new regulations.

 

One third said that was their experience – an increase from 29 per cent last time and slightly up also on 12 months ago.

 

The proportion seeking advice from the local chamber of commerce, national trade or professional associations and professional advisers is down, but there is a marked rise in direct communication from government departments – 19 per cent of companies saying that they learn about new rules affecting them through this channel, compared to only 7 per cent six months ago.

 

When it came to comparisons with competitor countries, three-quarters of the survey respondents believe the UK has a bigger problem with the way red tape is affecting businesses. That figure remains unchanged from six months ago.

 

“In these days of ever-increasing global competition, the closer we can get to a level playing field when it comes to issues such as red tape, the better the prospects will be for our companies,” said Mr Payne.

 

With Alistair Darling now more than six months into his job as Chancellor,   business owners were asked if they see any likelihood of him providing any major impact on the level of red tape.

 

Not one said they expected Mr Darling to deliver on his predecessor’s promises and pre-empt the Conservatives’ commitment to make changes.

 

A total of 42 per cent said that although the current Chancellor would not make a difference, they believe that an administration led by Opposition leader David Cameron, would reduce the red tape burden.

 

But an even greater number (44 per cent) said they could not see any of the party leaders having the commitment to make real progress towards solving the red tape problem for owner-managed businesses.

 

“The Department of Trade and Industry has now become the Department of Business, Enterprise and Regulatory Reform but it needs to prove that, besides promoting enterprise and business, it intends to reduce regulation,” concludes Brian Payne.

 

“After all, government has money to spend only if business is creating

wealth - and it is owner-managed businesses that provide the biggest dynamo for the economy. This is especially true for the regional economy of the South West.”