Businesses welcome red tape plans

06/08/2008

Businesses have welcomed government proposals to reduce the burden of red tape on small businesses.

The proposals, put forward today by secretary of state for business, enterprise and regulatory reform John Hutton today, will see government departments allocated a ‘regulatory budget’ to limit the amount of new legislation they can introduce.

Speaking ahead of today’s launch of a public consultation over the plans, Hutton said businesses in the UK cannot be allowed to ‘simply absorb’ the costs of new government initiatives.

“The introduction of a regulatory budget for every department will focus new regulations on the real priorities and act as a powerful incentive for departments to cut or streamline existing burdens,” he said.

“This innovative approach will build on efforts already in place to cut the burden to business by 25 per cent by 2010.”

Sally Low, director of policy at the British Chambers of Commerce (BCC) confirmed that businesses would be supportive of the measures.

“According to our latest Burdens Barometer, the cumulative cost of regulation on business since 1998 has now reached a staggering £66 billion.

“Clearly this figure is too high and in the current economic climate proposals which aim to reduce the burden of regulation will help to ease many of the pressures on companies across the UK,” she said.