Prime Minister announces reform package to cut red tape for small businesses

The Prime Minister announced deregulatory measures to simplify both non-financial and financial reporting for SMEs which is expected to save thousands of businesses across the UK around £150 million per year, at an event in Warwickshire. This includes increasing the number of companies which qualify as a smaller or medium sized business through a 50% uplift to the thresholds that determine a company’s size. This is expected to benefit up to 132,000 businesses who will be spared from burdensome form-filling and non-financial reporting requirements.

Several EU reporting requirements are also to be removed, including what companies must set out in their annual reports, whilst also making it easier for companies to share digitalised annual reports rather than paper copies – ensuring businesses practices are fit for the modern age.

Taken together, these changes are expected to deliver around £150 million of savings for SMEs per year and save small businesses at least 1 million hours per year in total.

The Government will also consult on further changes later this year including exempting medium-sized companies from producing strategic reports, which could save them a further £148 million a year and raising the employee size threshold from 250 to 500 employees, which will mean around 1,000 more large companies could become SMEs.

See the Gov.uk website for further details.