SWINDON businesses are losing 10 working weeks a year to red tape.

The problem is such that many business owners are actively recommending to friends and contacts that they do not start up their own company because of the demands of bureaucracy and form-filling.

According to LexisNexis's small business monitor carried out this summer, small businesses in Swindon and the south west say they are losing about 50 days a year to this.

While lower than the national average of more than 61 working days 458 hours or 12 weeks the study still paints a bleak picture for small businesses.

IRS Research carried out the work and Michael Thewlis, of IRS, said: "An alarming finding of our small business monitor was the number of people who cited, indeed specifically mentioned, the issue of red tape as a reason why they would not recommend someone to start their own business."

In the south west the particularly time-consuming areas are health and safety legislation (a problem for 66 per cent of firms), tax legislation (a problem for 55 per cent), and employment protection (a problems for 36 per cent).

Almost all firms say they are feeling the impact and cost of red tape on business, and with 22 new regulations coming into force in the UK this year, with many others under review, there is plenty of legislation to come to terms with.

While much of the legislation will improve the workplace such as the Disability Discrimination Act which comes into force on October 1 many changes can be costly to implement or, if not well-publicised, can catch companies unawares.

Swindon Chamber chief executive Dennis Grant said: "I would agree with this report, although the amount of time it takes up each year is at best a guess.

"Legislation is emanating out of Europe and while it starts as a 10-point plan, by the time it has become incorporated into English law it has become 30 points.

"We are capable of turning an A4 piece of paper into a book

"And, while big companies have human resources departments and directors to deal with it, it's the guy in charge of a smaller firm who simply has not got the time to cope.

"The will is there, yes, but not the time."

Mr Grant said that red tape is also becoming a competitive issue, as British firms are more burdened that those from mainland Europe.

Jemma Macfadyen, of LexisNexis, said: "As employees and customers become increasingly litigious and the Government imposes more and more legislation individual directors are becoming increasingly likely to face lawsuits and even prosecution for failing to comply."