Government Bins Business Red Tape
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Issued on 18 March 2011 - BIS
Business will be freed from
the burden of red tape under a package of sweeping reforms to
regulation, it was announced today.
In a speech to the
Federation of Small Businesses in Liverpool, Mark Prisk revealed
Business Secretary Vince Cable’s plans for a range of measures to be
included in the Growth Review that will allow businesses to grow,
- a public audit of almost
22,000 statutory instruments that are currently on the statute book; and
- a moratorium to exempt
businesses with fewer than ten employees and genuine start ups from new
domestic regulation for three years.
For the public audit, the
legislation will be grouped into themes on a dedicated website and
businesses will be asked to tell the Government what they think of
those regulations and how to improve the system.
The intention will be that
any overly burdensome or unnecessary regulations are removed unless
Departments can prove there is a good reason for them.
The moratorium will be
preceded by extensive engagement with businesses and other groups over
the coming weeks to ensure that this is introduced in a way that does
not have any unintended consequences for business.
Business Secretary Vince
“I promised bold action to
remove barriers to growth. Today, I am setting out how this will happen
in the vital area of business regulation.
“A moratorium for the
smallest and genuine start-up companies from regulations alongside the
removal of obligations for flexible working and giving time off to
train will be a real boost to businesses. It will let them concentrate
on growing their company, not thinking about dealing with the latest
request from Government.
“It’s not right that
businesses should have to deal with years of Government intervention by
abiding by arcane rules. That’s why I am asking them to help us take a
comprehensive look at the stock of regulation and tell us how rules and
regulations affect them. This is the first time such a radical look at
the statute book has been taken and we’re giving you the chance to play
your part. I’d encourage all businesses, large and small to grab it
with both hands.”
Other measures, identified
as part of the growth review into regulation include:
- Repealing the regulations
extending the right to request flexible working to parents of 17 year
olds for all businesses, which was due to be introduced on 6 April 2011;
- Not extending the right
to request time off to train for firms with less than 250 people;
- Introducing more
transparency into the Government’s One-in, One-out rule by publishing
the opinions of the Regulatory Policy Committee where they do not
believe the evidence supports a new regulation; and
- Lightening the audit
requirements of smaller firms by matching the minimum required by EU
directives, freeing small companies from unnecessary audit fees.
Chairman of the Better Regulation Executive Sir Don Curry said;
‘For some time now, I have
been pressing Government to recognise the burden regulation places on
our small and micro-businesses. So, I am delighted that this exemption
has been introduced. I would urge Government to continue to look at
measures such as this to continue to help economic growth.”
The Government also
announced that next week the Government will be publishing details of
how it is introducing sunset clauses into new regulations. New
regulations will be reviewed after five years to see if they are
effective, if they are still necessary, and whether the costs to
business can be reduced. If they are found to be working as expected,
the regulation will be extended for a further five year period.
About the Author
© Crown Copyright. Material taken from the BIS Department for Business, Innovation and Skills. Reproduced under the terms and conditions of the Click-Use Licence.
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Article Published/Sorted/Amended on Scopulus 2011-03-19 01:00:48 in Business Articles