Liberal Democrats in Business

News and views from the Lib Dem Treasury, Trade and Industry Teams and Business Forum

SMALL BUSINESS FAILURES TREBLE SINCE 1999

12.26.11pm BST (GMT +0100) Wed 25th Jun 2003

Brian Cotter MP, Liberal Democrat Shadow Small Business Minister

The rate of business failures among small firms has trebled since 1999 according to a major new research study by the Centre of Business Research, Cambridge published today.

The report 'Enterprise Challenged' shows that between 1997-1999, 7.1% of small and medium sized businesses failed, but between 1999-2002 failure rates shot up to 21.8%.

The survey shows that the waterfall of new legislation means that some firms are spending 2 days a week implementing new regulations. The wish list of small businesses includes tax reductions, cutting red tape, and more government support. One respondent said simply "Shoot the politicians."

Brian Cotter MP, Lib Dem Small Business Spokesman, said: "I would be most aggrieved to be put up against the wall by small business people, as I share their pain. My own small business has also had to deal with the increasing burden of red tape.

"Labour has proven itself to be insensitive to the needs of small businesses as these shocking failure rates show. Small businesses are the lifeblood of the British economy. When they fail, we all suffer.

"The tax system must be sensitive to the requirements of start-up businesses. A strengthened, independent small business service is desperately required to provide a one-stop shop to advise on the implementation of new regulations which hit small businesses hard."

ENDS (briefing sheets on the new Report can be supplied on request)

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