Chancellor announces plans to reduce red tape

Chancellor Gordon Brown has unveiled a new action plan aimed at reducing red tape for UK businesses.

The Chancellor announced the Better Regulation Plan today, promising that the new proposals would allow UK businesses to enjoy fewer inspections and less regulation.

During an address to business leaders in Downing Street today, Mr Brown unveiled details of a “risk-based approach to regulation” which would “break down barriers holding enterprise back”.

The Chancellor said that a new regulatory model was needed because the old model, established in Victorian times, subjected all firms to the same level of inspections, the same demands on form filling and the same regulation.

Under the new proposals, Mr Brown said that there would be “no inspection, no form filling and no information requirements without justification”. He said: “The better view is that businesses want to act responsibly. Reputation with customers and investors is more important to behaviour than regulation, and transparency – backed up by the light touch – can be more effective than the heavy hand.

“A new trust between business and government is possible, founded on the responsible company, the engaged employee, the educated consumer – and government - concentrating its energies on dealing not with every trader but with the rogue trader, the bad trader who should not be allowed to undercut the good.”

The proposals announced by Mr Brown included a million fewer inspections every year, a reduction in inspections of one third and a 25% reduction in form filling, with fewer regulators and simple standards.

Shadow Chancellor George Osborne said that British businesses would be sceptical of Mr Brown’s announcement. He said: “Every year Gordon Brown promises to cut red tape on business and every year he increases it. British businesses saddled with £40 billion of extra regulation under Labour will be very sceptical at his claim that he’s turned over a new leaf.”

(KMcA)