THE Government was today urged to "think small first" after its General Election win.

The Federation of Small Businesses Herefordshire, Worcestershire and Shropshire has reminded the party to recognise the importance of small businesses to the UK economy and urged it to reduce red tape.

"Labour is once again in a position of power but it will ignore small businesses at its peril," a spokesperson said.

"About 97 per cent of all UK businesses employ less than 20 people. That's four million firms. Such companies employ more than 58 per cent of the private sector workforce - almost 13 million people."

The FSB has urged the Government to put enterprise at the top of the policy agenda. It called for freedom from red tape, a crackdown on crime, more investment in skills, better business support, increased spending on transport, and a halt in the march of employment regulations. It said the latter was particularly worrying to small business owners.

"With 34 pieces of employment legislation now on the statute book, its no wonder that small firms have sleepless nights," added the FSB spokesperson."Small business owners, often one-man HR departments, are left feeling bewildered by the volume, complexity and rate of change in employment law.

"More than 5,000 members call the FSB's employment law helpline each month and employment tribunals have trebled in the last 10 years.

"Small businesses depend on regulatory stability and a flexible workforce.

"Much was said during the election about help for hard working families, but the government should not forget about the UK's one million or more hard working small business employers."