SMEs bear brunt of government policy costs
A study by the Centre for Economics and Business Research and the FSB shows that medium-sized businesses have borne the brunt of inflation-busting costs related to government policy. The increase in costs for SMEs directly resulting from public policy decisions has significantly outpaced inflation in recent years, with those in the construction industry carrying the heaviest burden. The study found that changes to government taxes, reliefs and employer obligations lifted outgoings by 20% for companies with between 50 and 250 staff between 2011 and 2016. This contrasts with a cumulative consumer prices index figure of 7.7%. Costs at companies with fewer than ten staff rose by 18.1%, and by 11.4% for those with between ten and fifty workers.
Source: The Times (02/10/2017)