A new report released by the Federation of Small Businesses says that the growth of small firms is being held back from an excess of red tape that has been generated from the new regulations that the Welsh assembly have introduced. The whole system of regulation is seen as being heavy handed and inconsistent and in need of a complete overhaul. This would allow companies to grow and so create more jobs, so stopping Wales falling behind other countries.

The report raises concerns that as powers have increased under devolution that more red tape had been created for businesses to complete. As the vast majority of firms in Wales employ less than ten workers this can mean that regulations are costly to implement and can be at times unenforceable. This can mean that more time than is necessary is being spent simply completing paperwork rather than generating work.

The Welsh government has been quoted that it had not seen the report and couldn’t comment, but it backs up a previous independent report, which was commissioned by the Welsh government, which found that simpler regulation would make it easier for firms to grow.

Obviously some regulation has to be in place and this recognised by business leaders, especially when it comes to safety at work, so that items such as hi-vis garments, hard hats and safety boots like the Dickies Fury Safety Hiker Boot, have to be required.

So with a more straightforward regulatory process projects can be initiated quicker and so more jobs can be generated, creating economic growth for areas and the country as a whole. Simple when you know how, but it is the speed with which new simpler systems can be discussed and implanted, so for the moment the ball is definitely in the Welsh government’s court.