Letter: Hardly credible

The Business Secretary recently announced that small firms will no longer have to produce independently audited accounts, a measure he believes will save £40 million a year for 42,000 businesses.

I have always respected Vince Cable and do not doubt his commitment to helping small businesses, but this demonstrates naivety that verges on madness.

I agree with his statement, that "the burden of regulation … takes up time and stops business growing and that means our economy does not grow".

However, far from helping small businesses, this move is more likely to damage a company's access to credit, therefore restricting growth and in fact adding to their costs.

Businesses extend credit to one another based on the trust that comes from knowing that a company is financially viable and one of the proof points is audited accounts.

Banks, too, look to lend on the basis of sound financial data, particularly in the current environment, so limiting the amount of information available will actually do more harm than good.

I think the law of unintended consequences may come in to play here and if the government wants small businesses to drive the economy, this is not the way to go about it.

David Ancliffe FICM

Moubray Road

Dalgety Bay, Fife