Government looks to slash red tape

Date: 7th August 2008

Businesses have welcomed government plans to try to limit the regulatory burden of businesses.

Earlier this week, business secretary John Hutton unveiled plans that would create limitations for how many new business regulations different departments could introduce.

The minister said that it was hoped the plan could slash the burden of regulation for the country's businesses.

He explained: "Good regulation should drive competition and boost our productivity, but too many new rules can stifle enterprise and blunt our competitive edge."

Businesses have reacted favourably to the plans. The British Chamber of Commerce said that its latest research suggested that the cumulative cost of regulation on business since 1998 has now reached £66 billion.

Sally Low, director of policy at the British Chambers of Commerce, added: "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.

"We're certainly very supportive of measures which aim to curb the flow of regulation on business."