Planning system affecting small businesses

Small business acquisitions are still taking place on a regular basis despite the economic climate.

However, it appears that their growth is being held back by problems with planning permissions as recent research has suggested that 69 per cent of small businesses have to wait more than the maximum eight weeks for local authorities to decide on most planning applications.

Conducted by the Federation of Small Businesses (FSB), the study found that just 30 per cent of applications are decided on within the allocated timeframe. Such problems could be worth bearing in mind when buying a small businesses and may make acquisitions with pre-allocated planning permission more attractive to those pressed for time.

John Walker, national chairman of the FSB, commented: “It is ridiculous that small firms are still being held back by the costly and complex planning system. Most small firms only want to make minor changes to their business that would enable them to expand and diversify, stimulating much needed growth in the economy.

“Small businesses are already over-burdened, especially in these difficult times. Providing a fast-track for small business planning applications would make the process cheaper and easier, and would provide the incentive they need to grow their business.”