Small manufacturers hit by massive consultant fees

It said: "With annual compliance costs rising by almost £500 million small business manufacturers are advised to rethink their own procedures and shop around for more affordable business services." The FPB estimated that compliance would cost the 145,000 small and medium sized employers in the manufacturing sector £140 million to comply with new regulations including the distance selling act or around £1,000 per company. "This takes the estimated cost of compliance up for manufacturers up to £2.6bn," said the FPB, "the highest amount for any industry sector, greater even than those in education, health and social work." Overall, it added, 40% of the cost was provided internally and 60% were external costs. "In total external advisors now account for around £1.6bn while the internal cost of compliance has risen to £1bn." The FPB's chief executive, Phil Orford, added: "SMEs in the manufacturing sector struggle to control costs – particularly in the current economic climate – and remain frustrated by the amount of red tape they have to negotiate every day. "Manufacturers are central to the rebalancing of the UK economy, but have borne the brunt of new regulation as typically they require employees to be in a specific place at a specific time so managing the right to request flexible working can be problematic." He added: "The increasing cost of fines for non-compliance on everything from health and safety to unfair dismissal has made the ongoing support we provide to our members through our helpline and guides all the more important."