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European Council: 23-24 March 2006

My Lords, a great deal of the discussion on the interests of small businesses centred on regulation and the number of directives that have been enacted. Plainly, regulation is more burdensome for smaller businesses than it is for larger ones; it takes up a larger proportion of the resources available to them which they would usually put into their entrepreneurship. The focus has moved—I believe as a result of the Hampton Court discussions—to ensuring that there are agreements on eliminating some of the barriers or additional costs on small businesses and that the regulations are subject to proper impact assessments so that small businesses are not inadvertently caught by the extent of regulation. The focus is now on the delivery of that agenda. I remind noble Lords that that agenda was agreed at Hampton Court and developed with some effect in the most recent discussion. As we have learnt, however—indeed, this has come up in your Lordships’ House throughout this brief discussion—we will have to continue to press it. I do not believe that the ogre of over-regulation goes away quickly.