THE European Union gave some cheer to the owners of small firms last week with the publication of its small business act, which contains several measures to limit the impact of red tape.

In the act, the European Commission said that, wherever practical, it would use common starting dates for regulations and decisions affecting firms. It would also publish an annual statement of legislation coming into force.

The commission plans to assess the impact of forthcoming legislative and administrative initiatives on small and medium-sized enterprises (SMEs), and take the results into account when designing proposals. It would also look to exempt small businesses from information or reporting requirements.

Britain’s business minister, Shriti Vadera, said: “We welcome the EU’s focus on reducing the regulatory burden. I am delighted that the EU has accepted our proposals that the impact of regulation on small firms will now be considered before legislation is introduced, that possible exemptions will be considered for smaller businesses and that common commencement dates are agreed.”

Simon Briault, a spokesman for the Federation of Small Businesses, said: “The act contains some good proposals but we think it could go further to reduce red tape and make it easier to do business in the European Union.”