The British Chambers of Commerce (BCC) has come out in support of the UK government’s proposal that from January 2013 every new regulation that imposes a financial burden on firms must be offset by reductions in red tape that will save double those costs.
Commenting on the announcement by Michael Fallon, Minister for Business and Enterprise, Dr Adam Marshall, director of policy and external affairs at the BCC, said: “Business welcomes the government’s efforts to deregulate. Unnecessary red tape costs firms time and money and can act as a barrier to growth. The new regime of ‘One-in, Two-out’ should go some way to reducing needless bureaucracy faced by companies.
“However, this rule will only apply to the regulations that are currently deemed ‘in scope’ of the system. This means that a significant amount of regulations affecting firms, including EU regulations, are exempt from this process.”
The system should be reviewed to ensure that relevant regulations are ‘in scope’, as this will help to reduce burdensome red tape that prevents businesses from growing, innovating and creating employment, he added.
“Businesses are doing everything they can to grow in an uncertain economic climate and bold action is needed to deliver growth – part of that must be reducing the regulatory burden on companies. Regulatory reduction isn't just about Whitehall processes. Businesses on the ground must feel the load is lightening substantially too."