UK business secretary proposes cutting paperwork for small firms

Jonathan Reynolds, the UK business secretary, outlined a proposal to overhaul corporate reporting rules for small and medium-sized enterprises. The plan would simplify filing procedures and remove some SMEs from mandatory form-filling altogether, with the Department for Business, Innovation, Science and Trade projecting a £450 million saving for businesses across the country. The department described current average reports as reaching 98,000 words, likening them to the length of The Hobbit, and noted that figures are even higher for FTSE 100 companies.

Reynolds argued that excessive paperwork distracts firms from core activities such as creating jobs and growth. He framed the initiative as a move toward a “21st-century economy” with less bureaucratic burden. A consultation on the reforms is scheduled to begin on 7 September.