The EU have announced cuts to the amount of red tape faced by small businesses, which could save each small firm over £1,000.

The European Commission is abolishing accounting rules which oblige ‘micro enterprises' - defined as companies with fewer than ten staff and with a turnover of less than £880,000 as year - to submit audit reports to national authorities.

"Reducing requirements for small businesses will help them cut costs, enabling them to get through the downturn in better shape and take advantage of an upturn," said business minister Stephen Carter.