Positive signs from government on reducing burden of red tape

Commenting on the first phase of the new government’s “action plan to bring an end to the excessive regulation that is stifling business growth” announced today, David Frost, Director General of the British Chambers of Commerce (BCC), said:

“BCC research shows that new employment regulations over the next four years will increase business costs by over £11 billion – so the announcement of an immediate review of all red tape in the pipeline is very welcome.

“At a time when we need business to drive recovery and create jobs, the cost of employing people clearly needs to be reduced. Employers consistently tell us that they will get on with creating jobs and wealth, but they need government to get off their backs and let them do it.

“While the initial signs from this government are very positive on reducing the burden of red tape, the coalition should remember that we will be subjecting them to the same level of scrutiny that we have with other initiatives over the years.”

Ends

Media Contact:

Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk

Notes to Editors:

1. The Government’s action plan –

• Creates a new Cabinet “Star Chamber” that will lead the Government’s drive to reduce regulation which is stifling growth, especially of small businesses. This Reducing Regulation Committee will be chaired by the Business Secretary and will enforce a new approach to new laws and regulations, ensuring that their costs are being properly addressed across the entire British economy.

• Announces an immediate review of all regulation in the pipeline for implementation which has been inherited from the last Government. The cost of implementing this amounts to £5bn annually before April 2011 and £19.1bn per annum thereafter. This will be the first action for the new Cabinet committee.

• Establishes a new “challenge group” to come up with innovative approaches to achieving social and environmental goals in a non-regulatory way.  This team would work with experts including Richard Thaler, the US behavioural economist.

• Introduces a new approach that will control and reduce the burden of regulation.  A “one-in, one-out” approach designed to change the culture of government, would make sure that new regulatory burdens on business are only brought in when reductions can be made to existing regulation.

2. Jonathan Djanogly, when he was shadow minister for Business, stated the Conservative’s reserved the right to review the Agency Workers Regulations - http://blog.conservatives.com/index.php/2010/02/04/another-piece-of-rushed-government-legislation/.

These regulations were a classic example of the UK government gold-plating EU rules and we would encourage this review to begin before the summer recess as part of the drive to reduce red tape burdens for SMEs.

3. BCC believes that these regulations should be scrapped: dual discrimination 2011 (net one off cost £4.86m, net recurring cost £2.42m); right to request time off to train 2011 (net one off cost £0m, net recurring cost £6m); and gender pay reporting 2013 (net one-off cost £1.42m, net recurring cost £0.40m).

BCC believes that these regulations should be postponed until economic recovery is secure: additional paternity leave 2011 (net one-off cost £3.4m net annual recurring cost £9.1m), and Equality Bill 2010 (net one-off cost £189.2m, net recurring cost £3.56m).

BCC believes that the regulations implementing the Agency Workers Directive 2011 (net one-off cost £40m, net annual recurring cost £1.497m) should be immediately reviewed.

4. See the BCC’s employment burdens timeline here - http://www.britishchambers.org.uk/zones/policy/press-releases_1/25-6bn-employment-bill-risks-job-creation-and-recovery-argues-bcc.html

5. The BCC’s 90 day plan for business growth calls for a review of regulations affecting employers – and a moratorium on burdensome new employment laws before 2014.
See the 90 day plan here - http://www.britishchambers.org.uk/6798219243715799179/BCC%2090%20Day%20Plan.pdf

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 business across the UK, which employ over five million people