With the Autumn Budget on the horizon, the Chancellor appears keen to show businesses some goodwill while preparing a package of wider fiscal measures.
One of the ways she hopes to achieve this is through a blitz on red tape as she strives to cut the paperwork and processes said to hold companies back.
If you run a business, it’s important to understand what might be changing and what you should do now so that any loosening of rules helps rather than hinders your operations.
What red tape is in the crosshairs?
The stated aim is to remove the pointless bureaucracy and needless form-filling that consume time and resources, particularly for smaller firms.
Specifically, the business blitz includes:
- Increasing size thresholds for corporate reporting and cutting duplicative requirements, meaning lighter-touch requirements for up to 44,000 medium-sized private companies and around 7,000 subsidiary companies, who will no longer be required to produce Strategic Reports.
- Removing the need for any company to submit a Directors’ Report to Companies House.
- Digital verification of planning documents, speeding up approvals for local projects.
- An online register of underground pipes and cables to prevent length and unnecessary delays caused by accidents.
- Less frequent data returns for thousands of banks, insurers and asset managers, with the Financial Conduct Authority scrapping lower-value returns and the Prudential Regulation Authority cutting the number of times firms need to update financial reports.
Another area receiving attention is Mergers and Acquisitions (M&A).
The proposal would change how market-remedy reviews are handled, moving some decision-making away from the current independent-panel model and into a new in-house committee structure at the Competition and Markets Authority (CMA).
This will mean that decisions that currently go to external panels could be handled internally by a CMA board committee.
Given the scope of these changes, there will need to be a consultation and new legislation before they can be enacted.
If a public consultation opens, we will make sure you know so you can read the details and offer your own feedback.
Could cutting red tape genuinely help businesses?
It is hoped that there will be some enhanced growth as a result of these changes.
Removing unnecessary paperwork can speed up decision-making, reduce costs and free managers to focus on growth rather than form-filling.
However, the success all hinges on how efficient any new systems are and the outcome of any consultation.
Poorly targeted cuts can remove valuable guardrails and create new risks.
We have seen how well-intentioned reforms can produce unintended consequences, as the disruption faced by some local councils following previous changes to audit arrangements is a cautionary tale.
If too much oversight is stripped away in the name of efficiency, growth can be undermined as firms are exposed to avoidable risk and harm.
In order to make the most of the changes while still protecting operating procedures, it is best for businesses to seek professional advice.
We can help you understand the new changes and advise on best practices so that valuable oversights do not get lost along the way.
As regulations do change, our team of accountants will keep pace with any new obligations and will advise you on the best strategies to facilitate growth.
Ultimately, we will welcome measures that allow businesses to focus on success, provided that they do not negatively impact long-term financial prospects.