Responding to the publication of the government’s Statement of New Regulation, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“Although the costs faced by businesses have been reduced, the government has not gone far enough in terms of real deregulation in key areas such as employment. There is still a long way to go if ministers are to honour their pledge to be the first administration to leave office having significantly reduced regulation.

“Businesses tell us they are still not feeling the burden of regulation lifting. Although doubling the unfair dismissal qualifying period to two years will boost business confidence to hire, more changes are needed to create a hard-hitting and comprehensive deregulatory package. This includes reforming redundancy rules, introducing no-fault dismissal and tribunal fees and sufficient action to implement promised health and safety changes. Reforms to mitigate the effect of the removal of the Default Retirement Age must also be put in place. With unemployment so high, it is crucial that these changes are implemented without delay to give businesses confidence to invest and grow.

“The regulatory process must be made more robust and transparent, with the volume of proposals deemed out of scope through the One-in, One-out System reduced. Furthermore, the recommendations made by the Regulatory Policy Committee should be published so the government can be held to account for their promises. This will also help to prevent any single minister or department from creating burdensome and costly new red tape.”


Notes to editors:
A survey of more than 1,200 businesses by the BCC shows that firms are still being hampered by employment legislation.

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people. For more information visit: http://www.britishchambers.org.uk/

Media contacts:

Liz Larvin
Tel: 020 7654 5813 / 07825746812
Email: l.larvin@britishchambers.org.uk

Lisa Morrison
Tel: 020 7654 5812 / 07717682221
Email: l.morrison@britishchambers.org.uk