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The treasury has asked officials in Whitehall if small businesses can be given exemption from new rules in an attempt to improve how legislation is applied.
The policy change will be issued to all Whitehall departments today which means officials will have to demonstrate they have considered alternatives to regulation and exemption for small businesses in future.
The exemptions are allowed under EU law meaning that retailers with less than 20 staff do not have to recognise a union, while those with less than five staff can choose not to provide a stakeholder pension.
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