|The Government has announced that it intends to reclassify the definition of small businesses meaning that more firms will become exempt from many Government regulations, such as reporting requirements. Currently, the Government’s starting assumption when developing policy is that businesses with less than 50 employees should be exempt from certain regulations. That assumption is being changed to businesses with less than 500 employees.
Currently, small businesses are presumed to be exempt from certain regulations. However, many medium sized businesses still report they are hampered by bureaucracy and form-filling.
The Prime Minister, Liz Truss, has announced plans to widen these exemptions to businesses with fewer than 500 employees for future and reviewed regulations, meaning an additional 40,000 businesses will be recateogrised and freed from future bureaucracy and the accompanying paperwork.
The Goverment said that exemption will be applied in a proportionate way to ensure workers’ rights and other standards will be protected, while at the same time reducing the burden for growing businesses.
The changed threshold will apply immediately (Monday 3 October) to all new regulations under development as well as those under current and future review, including retained EU laws. The Government will also look at plans to consult in the future on potentially extending the threshold to businesses with 1,000 employees, once the impact on the current extension is known.
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