The European Parliament has voted in favour of exempting struggling small businesses from producing onerous annual accounts. The amendment to EU company law would vastly reduce red tape for the smallest firms which are 90% of the total number of businesses in the capital.
London Liberal Democrat MEP Sarah Ludford said:
"This will give small businesses the breathing space they need in a tough economic environment."
"Two million businesses in the UK have fewer than 10 employees with 9 out of 10 London firms falling into that category. This slashing of red tape and costs will boost London's economy and help create jobs."
"EU governments must now endorse this proposal. The Brown government needs to work with LibDems to lighten the bureaucratic burden."