MEP welcomes EU Parliament plan to cut red tape for small businesses (Nuneaton and North Warwickshire Liberal Democrats)

Nuneaton and North Warwickshire Liberal Democrats <mail@alicefield.org.uk>

MEP welcomes EU Parliament plan to cut red tape for small businesses

March 10, 2010 5:39 PM
Originally published by Liz Lynne

Liz Lynne MEP and John Wright from the Federation of Small Businesses are campaigning to scrap pointless red tape.

Local Euro MP Liz Lynne has welcomed today's European Parliament vote for a plan to exempt struggling very small businesses from the need to produce annual accounts.

The proposal backed by MEPs in Strasbourg would dramatically reduce the bureaucratic burden on small businesses which can qualify as 'micro-entities' to enhance their competitiveness in the wake of the financial crisis.

Micro-entities are defined as businesses where two of the following three criteria apply: - 1. The balance sheet does not exceed €500.000; 2. The net turnover does not exceed €1,000,000 and; 3. The average number of employees during the financial year is 10 or less.

There were 69,510 businesses in the West Midlands metro county with nine employees or less in 2009, according to National Statistics.

Lib Dem MEP Liz Lynne has been campaigning hard with the Federation of Small Businesses for a reduction in red tape. She said:

"I have long called for reductions in the overcomplex regulations that small firms have to cope with.

"Last year there were 69,510 businesses in Birmingham and the West Midlands county with nine employees or less, most would qualify for this concession under the rules for turnover. This would be a huge step to help them get through the recession.

"Under this plan, a qualifying small business must still keep records that show the company's business transactions and their financial situation. That is important to ensure good practice.

"But they would no longer have to keep the same reporting rules as big companies that have the time and money to produce annual accounts with ease.

"UK ministers and other EU governments now have the opportunity to endorse this proposal and give a helping hand to small businesses. I hope our Government will seize this opportunity to lighten the bureaucratic burden".

ENDS