Regulation bigger concern for UK corporates than tax, study finds

16/February/2012

The cost of regulation and compliance is now more of a concern for UK executives than tax is, according to a study.

A survey by RBS Corporate & Institutional Banking found regulation was seen as the second biggest impediment to growth after market competition.

It found more than 50 per cent of managers see red tape as a major barrier to growth, up from 43 per cent last year.

This is contrast to the 27 per cent who said tax represented a major concern. Fears over tax have fallen thanks to moves to cut corporation tax and streamline the way foreign profits are taxed.

Commenting on the findings, Peter Russell, head of manufacturing at RBS Corporate, said the level of concern UK corporates have over regulation is "worrying".

"While there have been positive strides made, corporate UK clearly feels onerous regulation is still hurting business. On the positive side, taxation is now seen as less of a burden by companies, which is important as the UK looks to meet the challenges of low tax jurisdictions."