The Federation of Small Business asked the Centre for Economic and Business Research (CEBR) to report on the cost of running a small business.
The report contained no surprises to GBGC. In March 2018 GBGC wrote about why the high street was in the doldrums and the betting shop was finding life difficult.
The CEBR said the costs to run a typical small business had grown by GB£ 60,000 since 2011. During the period the total cost of taxes and red tape shot up by 15% to GB£ 480,000. It cited the employers’ contributions to the pension pot, the complex Making Tax Digital regime, business rates, National insurance contributions and vehicle excise duties.
The minimum wage for adults over 25 has risen by 29% since 2011 and it will rise by another 5% in April 2019. The pensions auto enrolment launched in 2012 forces employers to pay into a pension pot for workers, unless they opt out. Employers currently must hand over 2% which will increase to 5% in April.
Companies in the gambling industry would think this manageable. But add in the burden of regulation, an increase in remote gaming tax to 21%, a reduction in FOBT stake down to £2, and the extortionate cost of horserace media rights and other small businesses have got off lightly.
Britain was ranked 4th by the World Bank for ease of doing business in 2011 but has fallen to 9th in the years since.