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Firms in serviced offices in Northampton may be faced with more red tape8th November 2010

Businesses, such as those using serviced offices in Northampton, face having to deal with more red tape within their company, according to one expert.

Alistair Tebbit, spokesman for the Institute of Directors, observed that the coalition said they would cut the amount of legislation small firms have to deal with.

However, he noted the government has tabled a number of proposals that will add to the amount of regulations enterprises have to abide by.

Scrapping plans such as the extension of parental leave and the abolishment of the default retirement age would act as a stepping stone to decreasing the amount of rules firms - such as those in offices to rent - are confronted with, Mr Tebbit stated.

"It's all very well talking about cutting red tape or stemming it, but actions speak louder than words," he added.

According to the Federation of Small Businesses, 3.5 per cent of the European Union's (EU) gross domestic product is accounted for by the €123.8 billion (£107.6 billion) costs incurred by companies as a result of EU regulations.

 

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