In a red tape tangle Has the small retailer at last found a champion in the battle against regulatory burdens? Anne Bruce reports Independent retailers have long protested their business is being mummified in reams of red tape. So can a government commissioned report on small shops finally cut them free from regulatory burdens? The signs are good. The paper, Local Shops: a Progress Report on Small Firms Regulation, comes from the Better Regulation Task Force, a Cabinet sponsored independent advisory group, led by Northern Foods chairman Lord Haskins. Its remit is to analyse the effectiveness and affordability of regulation, and 264 of the 270 recommendations it has made in its four year lifespan have been implemented by the government. Ram Gidoomal, who led the small shops study, endows the 12 latest recommendations with the voice of experience. He is a former c-store retailer who now heads a worldwide marketing company. The report's authors also consulted the Association of Convenience Stores, the Alliance of Independent Retailers, the Federation of Retail Newsagents and the Rural Shops Alliance for a state of the nation look at the sector. Gidoomal said: "The task force remit is to focus on regulations, but we did not want to lose the feedback gathered at the grassroots since the end of last year." The key finding is that the sector needs a Tsar-like figure, a central champion to co-ordinate all activity on small shops, take a coherent overview and promote simplicity, consistency and good two-way communication. Feedback suggested the current "one size fits all" legislation penalises small businesses because they shoulder a disproportionate burden of implementation and running costs. Gidoomal said: "We must recognise the social value of shops. Let's not accelerate the continuing decline in the industry. I'm not calling for special treatment, just equal treatment." The report finds small shops' distinctive characteristics are not taken into account when regulations are drafted. "There are some very practical recommendations, such as try the legislation on bigger shops first to debug it. That will stop unintended consequences hitting small retailers." The report says policy makers do not understand the dynamics of small shops ­ the Climate Change Levy being one example of that ignorance. The costs of the levy are offset by a refund of National Insurance contributions. But many shops employ part-timers with little or no National Insurance payments. The report says: "Small shopkeepers in the grocery sector anticipate an average imbalance per store of £770 a year. Shopkeepers believed this adverse impact was an unintended consequence of the levy." A lack of advice and information makes the introduction of complicated policies such as the levy even more difficult according to the report. It calls for a free central internet portal to give simple information and advice, and for existing lines of communication to be powered up and brought into the mainstream. Gidoomal said: "The existing mechanisms are not all inclusive or all embracing ­ there are gaps. The Small Business Service was introduced by the government two years ago as an advocate for all small businesses, but it is still not clear what its plans are for retail, a big sector in volume terms. We have recommended the SBS funds the internet portal." Current awareness of the SBS was found to be low and the report recommends it steps up marketing on retailers' home territory. One recommendation is to advertise on cash and carry receipts. Gidoomal said: "There are many practical things within this report. Having run a corner shop, I felt it important that the learnings are not lost from those experiences ­ simple things like advertising on the back of a till receipt, or how to organise a training session. Offer me something down my street and I might have a chance of being there. Tell me where to go on the internet but don't overload me with information. Don't leave doubts in my mind as to what the regulation means. Give it to me straight. It is that type of thing which, hopefully, comes through." The report also asks government bodies to take a strategic view of the cumulative effect of all regulations on small businesses, and think twice before imposing any regulation. It says this view is echoed in the SBS's report, Think Small First, but the stock of regulations ­ new or amended ­ added each year remains significant. But will the task force succeed where others have failed, or just start a paper chase? So far the report has been sent to the small firms minister Nigel Griffiths, the Department of Culture, Media and Sport, Department of Transport, Local Government and the Regions, Customs and Excise, the Treasury, Department of Trade and Industry and the Home Office. Gidoomal is confident: "They must reply within 60 days and say what they are going to do. That's one check mechanism. We follow up reports annually. We go back to stakeholders and ask is it making a difference or is it just rhetoric? Is it working?" And the Association of Convenience Stores has given a vote of confidence. Chief executive Trevor Dixon said: "The report is a positive step forward in recognising the needs of the small store sector." {{NEWS }}