The UK economy is losing an estimated £41 billion a year to compliance red tape.
While the amount of money being spent on external consultants has fallen by 5.7%- payroll salary rises have kept the cost of compliance rising since 2011 at a rate of 8.5% a year.
The biggest compliance costs for FPB members are:
health and safety.
The study also highlights the problematic nature of the changes to flexible working, in particular shared parental leave and auto-enrolment, when it comes to costs. Businesses with more than 50 employees have a seen an increase in time spent on holidays and salaries.
Other key findings from the study are:
the salaried cost of compliance equates to £14,900 per company
internal compliance costs have risen by 13%
the cost of compliance is 10 times greater for small firms than large companies.
Ian Cass, managing director at the FPB, said “Our research shows that the deregulation agenda has not been effective as the legislation removed from the statute books has been cancelled out by a small number of legal changes and a reluctance of businesses to change processes while non-compliance penalties escalate.”
“Our members tell us that excessive red tape is a drag on productivity and there is a clear need for accelerating the deregulation agenda and incorporating tax compliance into any new initiatives.”
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