This Month's Euromyth from Catherine Bearder, MEP for SE England (Canterbury & Whitstable Liberal Democrats)

Canterbury & Whitstable Liberal Democrats <info@cantlibdem.org.uk>

This Month's Euromyth from Catherine Bearder, MEP for SE England

February 6, 2012 10:00 AM
By Catherine Bearder MEP

"EU laws would require small businesses to hand over €25,000 before they can start trading"

Claims made by UKIP's Paul Nuttall last month that EU laws would require small businesses to hand over €25,000 before they can start trading have been dismissed as untrue.

Mr Nuttall, who is also the deputy leader of UKIP, described the proposal as "outrageous" and an example of "unnecessary EU interference".

But there is no truth in the UKIP suggestion and the fact is that the EU requirements had been in place for more than 30 years and affected only Public Limited Companies with shares traded on the stock market.

The Federation of Small Businesses confirmed this and a spokesperson commented: "It is clear that this directive only applies to PLCs and not to limited companies, which make up more than half of our members (57%). Nowadays it is hard enough for small businesses to start up and survive without knocking confidence further. Publishing the wrong information is severely discouraging small businesses, especially start-ups. While this deters the individual business, spreading false information could damage the recovery of our economy as a whole."

For more myth-busting, have a look at the Euromyth section on my website.