Business secretary Sajid Javid has announced cuts to red tape that hinders businesses.
The plans were revealed at the BBC’s annual conference by Sajid Javid and is the continuation of the government’s commitment for less regulation for business.
According the the World Economic Forum, the UK already has the lowest burden of regulation in the G7. There was a Cutting Red Tape review programme, which companies have been responding to in order to identify areas that need reform.
Business Secretary Sajid Javid said: “This government is delivering on its commitment to free firms from £10 billion of heavy-handed over-regulation and build a more productive Britain.
“Hundreds of businesses responded to our Cutting Red Tape reviews and we are taking decisive action based on their experiences.
“Whenever we need to introduce new rules, we will consider their impact and make savings elsewhere. Through the Enterprise Bill, we are extending the scope of our deregulation target to cover the actions of regulators, going further than ever before to tackle troublesome red tape.”
The government pledged to improve on the current system, which states that for every new pound in red tape legislation, they will cut it two pounds elsewhere. The government will now increase that number to three pounds cut for every one pound created.
Tim Thomas, Director of Employment and Skills Policy at EEF, the manufacturers’ organisation, says: “Today’s confirmation by the Secretary of State that the government will find £10 billion of savings in this Parliament from cutting red tape on business will receive a mixed reception from UK manufacturers.
“Whilst they will firmly support the ambition, many will be left wondering why the big ticket items – the National Living Wage and Apprenticeship Levy to name two – won’t be counted towards the target. To make the target meaningful, and one that will make a noticeable difference to manufacturers, the better regulation net needs to be cast much wider than has been signalled.
“Carving out the main additional business costs, that will bear down heavily on business in the near and medium term, will lead manufacturers to doubt the government’s commitment to genuinely reducing the cost and burden of business regulation.”