Small firms ‘let down’ by regulation

SMALL firms say they are being damaged by the approach to regulation and want an overhaul of the system.

The Federation of Small Businesses, which boasts 20,000 members, argues there have been a number of failures in Scotland since devolution.

The organisation’s leadership identified problems with the drafting of licensing legislation in 2005, local council interpretation of European Union services directives and conflicting advice from officials.

In one case study, a beauty salon owner complained that environmental health officers had given conflicting advice on repeat visits in three different council areas. One officer said the business must pay more than £2,000 a year for an entertainment licence, while another said the salon should register as a food business because it sells tea and coffee.

Susan Love, policy manager for Scotland, said: “We believe that Scotland’s approach to regulation is hurting the country’s interests.

“We also believe that councils can do a lot to help local businesses survive and thrive, but they’re letting businesses down by failing to tackle bad regulatory practice.”