Regulation changes to save small businesses £40m a year

Small firms will no longer have to independently audit accounts any longer, saving 42,000 businesses £40m per year.

One of the barriers to growth is the burden of regulation. It takes up time and stops business growing and that means the economy does not grow.

Business Secretary Vince Cable outlined changes to regulation in one area which is a massive burden to business – producing accounts.

The government recognises the need for high standards in audit and accounting, but action is being taken in three areas.

These are that small company audit and account rules are stricter in the UK than is required by EU law, that for even smaller businesses of less than 10 employees, the government will push for exemptions to remove the requirement to produce two sets of accounts, that for medium sized businesses the government will push for EU restrictions to be lifted so that they no longer need their account independently audited and that the government will look at relaxing the audit and accounts rules for subsidiaries.

Cable said: "It’s important that we free small firms up so they can grow and drive the economy. The changes I have announced mean that small firms will be able to concentrate on growing and taking on more people instead of paperwork."

Further information:
Department for Business, Innovation and Skills