The UK government has announced plans to significantly reduce the amount of paperwork required from small and medium-sized enterprises (SMEs), a move that could save businesses across the country £450 million. Business secretary Jonathan Reynolds outlined the proposals, which aim to simplify corporate reporting rules and exempt some smaller firms from certain form-filling exercises altogether.
Government targets 'nonsensical' bureaucracy
The Department for Business, Innovation, Science and Trade described the current requirements as “nonsensical” for small businesses, including cafes, hotels, and furniture makers, which should instead be focused on their day-to-day trade. The department highlighted that the average annual report and accounts for some businesses now run to 98,000 words, a length comparable to JRR Tolkien’s novel The Hobbit, which contains more than 95,300 words.
For FTSE 100 companies, the average count is reportedly even higher, reaching 152,000 words. The proposed changes are intended to address this administrative burden and allow business owners to concentrate on growth and job creation.
Business secretary calls for commonsense system
“No one goes into business to fill out forms,” said Reynolds. “For years, hardworking firms in this country have been weighed down by pen-pushing paperwork and frustrating costs, ticking boxes that do nothing to help them grow their business.”
He added: “We’re stripping back outdated bureaucracy and building a commonsense system fit for a 21st-century economy. This will cut the cost of doing business, giving breathing room to bosses across the country and free them up to focus on what they do best, creating jobs and growth.”
Consultation and next steps
A consultation into the plans is set to begin on 7 September. The department’s announcement marks a significant step toward reducing regulatory pressure on smaller firms, with the potential for substantial financial savings and a renewed focus on business operations.
