SMEs set to see less red tape The Government plans to reduce red tape for small businesses, including requirements around reporting of financial statements. While firms with up to 249 employees are currently considered to be an SME and exempt from some regulations, ministers are to extend this threshold to 500 employees. Business Secretary Jacob Rees-Mogg told a fringe event at the Tory conference: “Regulation backs incumbents, it backs big business against challengers,” going on to say: “You mustn’t regulate them as if they’re big businesses, you stop the level of growth, you don’t get the growth you need.” He added that the plans do not represent “a mad rush to remove all safety regulations,” but do involve “making sure the regulations are ones you actually need and pertain to real issues businesses face.” Craig Beaumont of the Federation of Small Businesses said the change "should prevent bunching as firms reach the 250 threshold and take their foot off the pedal to avoid falling into regulatory scope."