Every Whitehall department will be forced to abide by the rules to help small firms and others save money in the years to come as part of a blitz on bureaucracy.
Ministers believe that the scheme has already helped save nearly £1 billion since January last year - especially important as the UK looks to spark economic growth.
Michael Fallon, the minister for business and enterprise, said that business men and women still have to spend "too much time and money complying with government regulations".
"The government is focused on making sure Britain competes and thrives in the global race by helping fire up our private sector and boost enterprise," he explained.
"'One-in, One-out' has driven a profound culture change across government. Departments are starting to see legislation as a last resort, not the default option."
Clare Richmond, director of town centre marketing consultancy Speakto.co.uk, said last month that the relaxation of red tape is crucial to future business growth.
Posted by Emily Smith