Cost of regulation penalising small business   1st May 2006 The British Insurance Brokers' Association (BIBA) and the Federation of Small Businesses (FSB) have jointly warned the Government that they must do more to combat the disproportionate impact of regulation on small insurance brokers. BIBA has just released new research showing that the smaller the company the greater the proportion of their annual income is spent on meeting the demands of regulation . Representing over 50,000 individual brokers, Eric Galbraith, Chief Executive of BIBA has written to the Prime Minister , urging him to urgently review the disproportionate cost of regulation on small businesses. The new research shows that an average of 3.7% of a company's annual income is spent on meeting regulation. However, for companies with less than £100,000 in income that figure rises to 5.20%, compared with 1.13%.for companies with an annual income of more than £100,000,000. Commenting, Eric Galbraith, Chief Executive of BIBA said: “This new research makes it clear that the Government needs to do more to ensure that regulation is proportionate. Excessive regulation can be damaging for all businesses, but it is not good enough that the smallest companies are having to spend five times more than the largest simply to keep up with regulatory demands. Everyone knows that regulation is required, but it should be proportionate and not penalise the smallest businesses.”
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