Although the government introduced the Red Tape Challenge and a ‘one in one out’ policy for employment laws, the burden of red tape is still too great, according to the British Chambers of Commerce. The BCC recently released a new report, ‘Red Tape Challenged?’ which states the new system lacks consistency and transparency.

The BCC studied Impact Assessments from a number of government departments and feedback provided by the Regulatory Policy Committee to look at the progress which has been made by the government in the reduction of red tape. The burden of regulation can have a huge effect on business growth, job creation and innovation.

In 2011, the government pledged to look at ways to reduce legislation for small businesses, but the procedures lack consistency and still more needs to be done.
The ‘one-in one-out’ system means that a department wishing to introduce new legislation has to scrap an old law. This would reduce legislator costs for small businesses. However, a number of regulations originate from Europe that are not within the remit of the scheme, or the regulations refer to environment or tax which are not applicable.

Director general of the BCC, John Longworth said:

“Businesses the length and breadth of the country are yet to feel the concrete or positive changes promised by the government’s deregulatory drive. Only substantive and real reductions in the regulatory burden will give companies confidence and enable them to plan for future growth with certainty and clarity.”

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Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

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