BUSINESSES in the Yorkshire region are planning for growth, according to a survey of chartered accountants.

But they are in danger of being snarled up in red tape.

Over the next two years 46 per cent are planning to expand by more than ten per cent per year - with 84 per cent having at least some level of growth in the pipeline.

The survey, to which 1,300 chartered accountants responded, was carried out by the Institute of Chartered Accountants in England & Wales (ICAEW), in partnership with Alliance & Leicester Commercial Bank.

It found that despite the recent economic downturn, firms had created a platform for the future with more investment in research and training, increased efficiency and improved marketing.

The main barriers to growth were red tape - which, the survey revealed, is costing UK businesses £6 billion a year - the inability to recruit skilled staff, access to finance and transport difficulties.

David Dickson, chairman of the ICAEW's Yorkshire & Humber SME Group, said: "It is encouraging to see the optimism inherent in the regional SME sector. With the decline of Yorkshire & Humber's traditional industries, smaller firms have developed to fill many of the employment gaps.

Mr Dickson, managing director of chartered accountants Garbutt & Elliott of York, said: "They are more likely than average to employ at least 50 people, a quarter of them are still in manufacturing, and nearly eight in ten have been trading for at least ten years."

Updated: 09:13 Tuesday, November 04, 2003