Government Policy To Cost More In Red Tape

You are here: Home / News / Government Policy To Cost More In Red Tape
08 Aug 2011

The Government’s flagship policy to promote growth and job creation in our region is set to cost more in administration and red tape than it has given in support for new businesses.

Last year the Chancellor announced that a £1 billion 'national insurance holiday' to help new business start-ups would help 400,000 new firms – an average of around 45,000 businesses in each eligible region and nation of the UK.

However, since the scheme was launched last September only 645 firms in Yorkshire & the Humber have benefited - just 1.5 per cent of the number promised by the Government.

Across the country just over 5,000 businesses have benefited. With an average benefit per business of £2,000, that means around £10.3 million has been paid to businesses – less than the £12 million the Treasury says the scheme will cost to administer.