Thanks to the draconian nature of the Independent Parliamentary Standards Authority, MPs are finally getting a taste of their own medicine when it comes to regulation.  And, according to The Times, they don't like it up 'em:

The agency, nicknamed “I Punish Staff Also”, has also been criticised for revising its rules online without notifying MPs. “You have to read through their rules from start to finish every week to find out what’s been changed.”

Boo hoo.  MPs have rarely thought about the implications for small businesses as they merrily legislate in the House of Commons.  For example, as a result of the smoking ban (a good idea in my view, but terribly implemented), businesses had to buy "no smoking" signs and put them up.  Failure to get the right size of sign could mean a fine.  Business owners had to find out precisely what was expected of them, on pain of penalty.

Similarly, business owners are also having to get to grips with NEST pensions and its implications for their staff.  Did MPs think it might be a good idea to stick to an existing definition of earnings, or to collect NEST pensions via an existing mechanism (e.g. National Insurance)? Er, no, they created brand new definitions.  And it's still unclear precisely how companies will prove to the regulator that their current pension arrangements are equivalent to NEST, meaning that many will choose to dump them, to the detriment of employees.

These burdens are just two examples of the many hundreds of regulatory changes that affect SME business managers each year.  Sometimes they'll do what MPs do, and waste time reading the legislation cover to cover, when they really ought to be managing the business.  Sometimes they'll hire a professional accountant or lawyer to help.  Good for me and my fellow accountants, perhaps, but not always great for the business, who would rather spend the money elsewhere.  Or sometimes they'll just wing it and hope they do a good enough job to avoid the severest regulatory penalties.

I'm glad MPs are hurting.  I hope they hurt some more, so they know what it's like being on the receiving end of bad, burdensome legislation.  And that they reflect that they must do better, for the benefit of the true wealth creators of our country.

People who read this post also read:

• Mass DNA testing and MPs’ expenses
• Kennedy wibbles after flipping profits
• Our hatred of Tesco is irrational
• In which I wonder about that BBC article on the benefit cap
• Get stuffed, ASH

Filed under: Politics, Regulation with tags better regulation executive, ipsa, lawyers, mps' expenses, nest, small businesses, smoking