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Red tape is one of biggest issues for SMEs

SMEs based in serviced offices and other premises should be temporarily released from some of the red tape tying them into extended paternity leave and the abolition of the default retirement age, the Federation of Small Businesses (FSB) has suggested.

A spokeswoman for the organisation, which represents the interests of smaller businesses, said that red tape was “one of the most burdensome and complex issues” for small businesses and posed a real threat to growth.

Even with the recent moratorium on new domestic regulations for micro-firms, she said the government could so a lot more.

She added: “The FSB is disappointed that the government appears to have decided to remove some large regulatory changes from the moratorium, including the extension to paternal leave pay and the removal of the default retirement age, both of which impose a big burden on small businesses.”

Recently, the body called for the government to reduce payroll costs for small companies to encourage them to take on more staff.