96% of Businesses Are Being Blocked By Red Tape, Survey Finds

Businesses are fed up with the amount of red tape they’re facing, with a new government survey revealing that 96% of respondents say regulations in their sector are disproportionately creating problems.

Top gripes include being required to submit the same information multiple times, waiting on frustratingly slow processes, and forking out for direct costs from schemes like the Extended Producer Responsibility (EPR) scheme.

It’s a burden that’s reportedly costing UK SMEs £36 billion and 379 million hours a year – and while the government has pledged to cut red tape, businesses say progress is falling short of what’s needed.

Businesses say mounting regulations are blocking growth

If you’re a small business owner frustrated with the UK’s slow, burdensome, and often complex regulatory system, you’re not alone, finds the recent Unlocking Business questionnaire by the Department for Business and Trade.

According to the questionnaire, which surveyed 271 businesses, trade associations, and individuals across the UK, 94% of respondents said there are regulations that limit their ability to grow and innovate, while 89% complain that rules are imposing unreasonable direct costs on their business, as firms continue to be squeezed by economic pressures.

One of the most common grievances was duplication. Due to the fragmentation of government agencies, business owners often have to submit data repeatedly to multiple regulators – an issue compounded by differing UK and EU regulatory standards since Brexit.

Sluggish turnaround times were another major concern. 61% of respondents had experienced delays to approvals, licensing, and authorisations, with waits ranging from weeks to years. Businesses complain that waiting in limbo stalls investments, delays product launches, and in certain cases, prevents products from entering the market altogether.

There’s also the direct financial hit. There are real costs to toeing the line, especially

in sectors that require multiple licences and standards for a single premises, like hospitality businesses navigating food safety rules and hygiene ratings, and service businesses navigating health and safety legislation, beauty salon regulations, on top of local licensing.

Among a raft of expenses like permitting fees, third-party compliance advice, and reporting costs, the EPR packaging scheme was flagged as the most resource-intensive obligation they face, as it requires producers to cover the full cost of managing household packaging waste.

Can the government’s £6bn “blitz” actually fix the problem?

The report is careful to note that businesses aren’t looking to throw out the rulebook altogether, but are campaigning for “a more practical, efficient, and proportionate system”.

Yet, with the Federation of Small Businesses finding that the UK’s SMEs collectively spend 379 million hours, and up to £36 billion a year navigating red tape, it’s clear something needs to budge.

Fortunately, the government isn’t ignoring pressures entirely. Last year, Chancellor of the Exchequer Rachel Reeves announced a “blitz on business bureaucracy” deregulatory drive, designed to save businesses nearly £6 billion a year by the end of Parliament.

The Labour government has built on this by pledging to reduce the administrative cost of regulation by 25% by the end of the same time frame. If successful, this could slash approximately £5.6 billion from the estimated £22.4 billion annual compliance burden according to the government’s own findings – a significant saving for cash-strapped small to medium-sized businesses (SMEs).

However, despite these promising claims, the government has yet to walk the talk. Just last month, the government declared that all companies, regardless of size, will be required to file profit and loss accounts with Companies House from April 2028 – just one example of an extra regulatory burden that will eat into the businesses’ time and resources.

The Federation of Small Businesses (FBS) have welcomed the government’s admission, but its policy chair, Tina McKenzie, has also been quick to address the potential gap between rhetoric and delivery.

“It can feel like box-ticking for box-ticking’s sake,” McKenzie said, “Past governments have made all the right noises about simplifying and easing regulation, but their efforts have fallen short of what’s needed.”

Ultimately, with billions of pounds and hundreds of millions of hours on the line, the government’s targets represent a step in the right direction. However, whether this becomes the reform businesses have been waiting for, or another false start, depends on what actions are taken next.

Quick ways you can tackle red tape

If you feel like you’re drowning in bureaucracy, there are practical steps you can take to reduce the burden of compliance.

To ease frustrations around duplication, centralising your compliance records by keeping a single, up-to-date file of licences, certifications, and data will help you avoid repeating yourself every time a different regulator asks for submissions.

With 61% of businesses facing delays to approvals and authorisations, it’s also sensible to factor realistic waiting periods into your plans, instead of assuming a quick turnaround.

Seeing what free government resources are at your disposal is a sensible approach, too. The Get help and support for your business page on GOV.UK connects businesses to a free, multi-channel Business Support Helpline, designed to tailor guidance on schemes and publicly funded support to your business type and location.