The number of firms run just by the businesses owner (“one-man bands” in politically incorrect speak) has increased for the sixth consecutive year. Some 3.2 million businesses (just under 75%) out of a UK total of 4.3 million have no staff other than the owner. This figure is up from 3.1 million in 2004 and 2.9 million in 2003.

In a survey by Nat West Bank just under half of the single person firms cite red tape as the reason why they do not want to become employers. The situation has been exacerbated over the past five years by changes to employment law, increased health & safety legislation and amendments to tax and payroll requirements.