Nearly 40% of small business owners blame the Chancellor of the Exchequer for the increasing burden of red tape.

A recent poll, commissioned by online accounting software firm KashFlow, has revealed the constraints and worries that increasing amounts of red tape have had on small businesses around the UK. The first ever Red Tape and Bureaucracy Awards, reveals that the Chancellor of the Exchequer is the person that the majority of small business owners and accountants blame for increasing red tape in the UK. This was closely followed by the European Union at 23% and former Chancellor and now Prime Minister, Gordon Brown at 21%.

Over 75% of respondents stated that red tape has had an adverse impact on their company and of these respondents, 95% of accountants said this was due to ‘money laundering paperwork’. 94% of those surveyed felt that there was now even more red tape than there was 10 years ago, suggesting that attempts to cut down on legislation have had the opposite effect.

Speaking about the findings, the MD of KashFlow, Duane Jackson commented, "At present, there seems to be a ‘one size fits all’ approach, but it is argued by many that smaller firms simply do not have the capabilities to comply with all regulations as easily as bigger firms. Smaller businesses may not have the appropriate funds or access to accountants, lawyers or human resource professionals. Consequently, staff members and managers are being lumbered with the burden of processing VAT and researching new rules and regulations regarding health and safety, number of work hours permitted, non smoking rules and so on... Added to this, is the pressure of constantly updating this information, just to avoid a hefty fine for non-compliance".