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The large amount of red tape faced by SMEs and other UK businesses is putting them at an economic disadvantage to their international counterparts, experts have claimed.
A spokesman for the British Chambers of Commerce (BCC) recently explained that small firms are hit particularly hard by complicated company legislation and regulation, as they do not have the resources to absorb this extra cost.
He continued: "According to the World Economic Forums competitiveness league, the UK has slipped from 4th to 13th, while the UKs productivity levels fail to keep pace internationally.
"In contrast our Burdens Barometer figure, which measures the cost of new regulation to business since 1998 now stands at more than £55 billion.
"This figure has risen from £10 billion in 2001 when we first compiled it."
The BCC has also emphasised the importance of the current two-tier system of corporation tax planning, which is based on a companys profits.
Many experts believe this is crucial to small business success, as a flatter tax system would disadvantage smaller enterprises who would be expected to compete with larger more profitable companies on an equal footing.
The Institute of Directors (IoD) recently produced a report entitled The SME Glass Ceiling: Growth Obstacles in 2007.
Overregulation was identifed as a prime business concern, with 42 per cent of respondents saying regulation was holding back their business.
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