News

December 18, 2009

Government claims to be on target to cut red tape by a quarter

The Government is on track to meet its target to cut red tape by 25 per cent by May 2010, according to research from the Department for Business, Innovation and Skills (BIS).

The BIS report into the Government’s Simplification programme - which is aiming to get rid of unnecessary paperwork - found that 280 regulation changes have been introduced this year, saving UK businesses an estimated £2.9 billion. It also highlighted that it has already achieved 22 per cent of its 25 per cent red tape reduction target.

The reforms include the Health and Safety Executive removing eight forms which businesses previously had to fill out to notify the Government before employing staff in their premises, and the removal of the requirement for businesses involved in the transportation of dangerous goods to produce instructions on the safe handling of products in all the languages of the countries through which the shipment travels.

The Federation of Small Businesses (FSB) welcomed the Government announcement, but believes more could be done to simplify business regulations. “It’s clear from our surveys that businesses still feel greatly burdened by regulation,” said an FSB spokesman. “Our members tell us that it is the flow of new laws as well as the existing stock that causes problems.

“While we welcome the fact that Government is listening to business and is aiming to cut £5 billion in wider policy costs over the next five years, it is not enough to stem the flow,” he added.

The Government recently announced a new commitment to cut the cost of business regulation by £6.5 billion by 2015. It revealed in the Pre-Budget Report that it has already identified potential savings of more than £1 billion towards the new target.

“Simplification is making a real difference to the everyday lives of businesses, helping to make things as simple as possible, saving more than £8 million a day, every day,” said minister for business and regulatory reform, Ian Lucas.

“Individual measures may look small but it is the overall impact that adds up to real savings,” he added. “Support from the business community has helped make sure that savings to businesses are felt on the ground.”

• For more information about the Simplification programme, visit the BIS website