Posted by

Kamala Mackinnon, Campaigns Adviser

22 Nov 2012

This week the Minister for Business and Enterprise, Rt Hon Michael Fallon, announced that as part of the government’s red tape blitz a new ‘One-in, Two-out’ rule will be imposed across every Whitehall department from January 2013. This will mean that for every one pound of new UK regulations imposed, two pounds of savings will need to be found by departments to offset this.  The new system will apply to domestic regulation affecting businesses and voluntary organisations. This is similar to the previous system of ‘One-in, One-out’ which required the costs of every new regulation to be matched by savings of an equivalent amount.

The BCC welcomes this measure which should help to reduce the unnecessary amount of red tape facing companies. Some regulation is undeniably needed with the ‘right kind’ leading to economic benefits – this is in contrast to needless bureaucracy at the moment which can prevent companies from growing, innovating and creating jobs.  Businesses from across the Chamber of Commerce network consistently tell us they are spending time dealing with unnecessary regulations that should be spent growing their companies.

This regulatory change, whilst welcome, will only apply to the regulations currently deemed ‘in scope’ of the current framework. This effectively means that a large chunk of regulations affecting business, including EU regulations, are excluded from the process. For this system to work and be successful the relevant regulations must be in scope of the system.

Businesses up and down the country are doing everything they can to grow in an uncertain economic climate. In return, they must be met with an enterprise-friendly government. Part of this needs to be a genuine reduction in unnecessary red tape facing firms. The BCC believes this should be combined with targeted measures around infrastructure, access to finance and help for exporters – measures called for in our Autumn Statement submission. The government must pull out all the stops to enable British businesses to access new markets, invest and create jobs.