The smallest businesses in Oxfordshire are being hit hard by the soaring cost of red tape, according to a survey of business advisers, writes David Duffy.

The study by the Institute of Chartered Accountants said the cost of putting new legislation into practice had more than doubled since last year and regulation was considered the most serious barrier to growth for small businesses.

Advisers estimate that the cost of red tape now amounts to between four and six per cent of turnover for smaller businesses.

Frank Pyne, the Institute's enterprise liaison officer for the South East, said: "Not only does the volume and complexity of regulation eat into the resources small businesses, but it also absorbs far too much time that could be spent more valuably on survival and expansion.

"Small businesses are a vital engine of innovation and growth. They need support from government and other agencies to cope with the challenges they face."

The survey indicates that the recently established Small Business Service needs to raise its profile.

Mr Pyne said the Government's new Small Business Service would have to deliver on its promise of easing the regulatory burden.

"Business advisers are clear what they want from the SBS. They expect a review of existing legislation affecting small business and action in the form of lobbying for exemptions and simple guidelines. They expect an improvement in Government understanding of small business and better consultation."

The survey said the annual cost to businesses with ten staff or less had jumped from 1,700 to 3,600. For businesses employing up to 50 staff the cost has risen from under 5,000 to more than 8,000.