£4 million of red tape cuts for businesses

Businesses in the UK will save around £4.17 million if the Government sticks to plans to cut regulatory burdens between January and June 2012, a new report published by the Department for Business, Innovation and Skills (BIS) says.

The latest Third Statement of New Regulation report, part of the Government's ongoing strategy for reducing red tape, shows that there has been a net reduction in regulation over the last 12 months, partly attributed to a 'one-in, one-out' rule. Departments are to remove more legislation in the coming six months as a result of the Red Tape Challenge, which aims to reduce red tape restrictions that are hampering business' growth.

The report also claims that the number of regulations that reduce business costs continue to outweigh the number which put new costs on businesses.

Mark Prisk, business and enterprise minister, said: "The One-in, One-out process is one of the best tools we have to cut the costs and burden of regulation on our businesses.

"But we know that changing the culture of regulation in Whitehall is a long-term job, and all of us in Government have to, and will, continue to root out any red tape which poses more of a hindrance than a help to UK businesses."

The latest report is published four weeks ahead of the April Common Commencement Date on 6 April in preparation for regulations that are to come in on that date.

Meanwhile, radical Conservative MPs known as the Free Enterprise Group have  called for a more drastic approach, and are calling on the Chancellor to 'bulldoze red tape' with further deregulation.