Wednesday, 15 February 2012 12:32
Over half of senior managers view "red-tape" as one of the biggest barriers to growth.
Twice as many senior UK executives are concerned about increased regulation and compliance costs than tax according to research by Royal Bank of Scotland Corporate & Institutional Banking (LON:RBS).
Over half of senior managers view "red-tape" as one of the biggest barriers to growth – an increase from 43 per cent in Q1 2011. In contrast 27 per cent citied tax as a major concern compared to 38 per cent. Fears around tax have fallen following moves last year to cut corporation tax and simplify the way foreign profits are taxed.
Regulation was the second biggest impediment to growth overall after market competition for mid-corporates. While the government has announced measures to ease the regulatory burden on small companies, the study reveals that this is clearly also an issue for mid and large-sized businesses.
Commenting on the findings, Peter Russell, head of manufacturing at RBS Corporate & Institutional Banking, said: "It is worrying that regulation is seen as one of the biggest barriers to growth for UK mid-size companies.
"While there have been positive strides made, corporate UK clearly feels onerous regulation is still hurting business. On the positive side, taxation is now seen as less of a burden by companies, which is important as the UK looks to meet the challenges of low tax jurisdictions."
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