New code introduced to cut red tape

The Department for Business, Enterprise and Regulatory Reform, del comma has launched a new code of practice aimed at easing the administrative burden on small business owners and "improving the way regulators work with them".

The Regulators Compliance Code is part of a government programme to cut red tape.

Business owners can look forward to a reduction in inspections, paperwork and information requests, according to a statement released yesterday.

Regulators will take a "risk-based" approach to small businesses, meaning fewer inspections for "the majority of compliant businesses" and more inspections when there is a high risk of businesses failing to comply with regulation.

Business and competitive minister Shritti Vadera said: "Regulators must take a light-touch approach to companies who comply with the law and target enforcement only at those who benefit by flouting it … This is a vital step towards delivering on our promises to cut red tape."

Last month the Federation of Small Businesses said companies were beginning to lose their faith in the government.