News from Peter Skinner MEP

ISSUED BY PETER SKINNER, LABOUR MEP FOR THE SOUTH EAST REGION

 Peter Skinner MEP , 99 Kent Road, Dartford DA1 2AJ

Tel: 01322 270345 , Mobile: 07976 969912

For immediate release                          Wednesday, 10 March 2010

Labour Euro MPs help small firms beat recession with £1,000 cut in red tape

The European Parliament has voted today (Wednesday 10 March) by an overwhelming margin to exempt very small firms, known as micro-entities, from EU law on accounting standards, reducing the burden of red tape and helping them beat the recession. 

Economic and Monetary Affairs Ctte member Peter Skinner MEP said: “as our small firms struggle to overcome the crisis we are determined to help them by cutting red tape.

“It is vitally important that EU law does not over-burden very small businesses. This exemption means that very small firms will save around £1,000 in accountancy and audit fees.”

Skinner added: “We have made a commitment in the EU to reduce burdens on business by 25% by 2012, and this law is an important step towards meeting that goal. Micro-entities are often the first step on the ladder to successful employers of the future, we need to nurture and support these businesses, not place extra burdens on them.” ENDS

Background

This Commission proposal forms part of Europe’s response to the financial crisis and is an important element of the European Small Business Act; a set of proposals to reduce burdens on Small and Medium Sized Enterprises (SMEs).

The law will amend the 4^th company law directive, dealing with accounting standards, to exempt micro-entities, the smallest category of SME, defined as firms with, for example, less than 10 employees and a small turnover.  It was backed by the European Parliament by 445 votes to 196.

Over 5 million firms across Europe fall into this definition, and the European Commission estimates that savings for each firm will be around £1,000.