Nearly all businesses responding to a UK government survey have said the country’s regulatory system is creating unnecessary obstacles, with many arguing that complex rules, inconsistent enforcement and lengthy approval processes are limiting growth and increasing costs.
The findings come from the Department for Business and Trade’s Unlocking Business questionnaire, which gathered responses from 271 businesses across a range of industries. According to the survey, 96% of respondents said regulators were creating unnecessary problems in their sectors, while 89% believed current regulations were imposing unreasonable costs on businesses.
The department’s summary concluded that the UK’s regulatory framework is often “complex, inconsistent, slow and burdensome,” with small and medium-sized enterprises (SMEs) facing the greatest challenges. Officials said the responses provide valuable evidence as the government seeks to reduce administrative burdens on businesses.
Many companies reported that regulations are preventing them from expanding, developing new products and services, and improving efficiency. Businesses also complained that different regulators frequently require the same information to be submitted multiple times because government agencies do not effectively coordinate their activities.
Respondents pointed to fragmented responsibilities, conflicting guidance and differences between UK regulations and international standards, particularly those of the European Union, as key sources of frustration.
Among the regulations most frequently identified as restricting growth was the Extended Producer Responsibility (EPR) scheme for packaging, introduced in April last year. The scheme requires companies to contribute more towards the cost of managing household packaging waste, and businesses said its reporting requirements have become one of the most resource-intensive compliance obligations they face.
Companies also highlighted challenges linked to environmental permits, chemicals regulations, financial reporting requirements and compliance with IR35 contractor tax rules.
Delays in regulatory decisions were another major concern. Businesses said that after submitting applications, they often receive little or no communication from regulators, with approval processes taking anywhere from several weeks to several years. These delays, respondents said, can significantly increase operating costs and slow investment decisions.
Businesses called for simpler and more efficient regulatory processes, clearer guidance, faster decision-making and greater use of digital systems. Many suggested introducing single online portals that would allow companies to submit information once for use by multiple government agencies, reducing duplication and paperwork.
The findings mirror research published in March by the Federation of Small Businesses (FSB), which estimated that regulatory compliance costs SMEs around £36 billion annually and consumes approximately 379 million working hours.
The UK government has pledged to reduce the regulatory burden on businesses by 25% before the end of the current Parliament as part of wider efforts to improve economic growth. The initiative complements the Chancellor’s plan to remove £6 billion worth of business bureaucracy.
FSB Policy Chair Tina McKenzie welcomed the government’s objective but warned that previous administrations had made similar commitments without delivering meaningful reform. She said recent measures, including requiring all companies to file profit and loss accounts with Companies House regardless of size, had added new costs for many smaller firms.
Kate Shoesmith, Director of Policy at the British Chambers of Commerce, said better coordination between government agencies was essential, adding that businesses often feel they are completing repetitive paperwork without clear benefits. She urged policymakers to ensure future reforms reduce administrative burdens rather than adding to them.
