Coalition commits to cutting red tape

June 9, 2010
Lizzie Syddall

Cutting red tape for business leads a raft of measures in the coalition government’s work programme announced yesterday.

The measures include:

Cutting red tape through a ‘one-in, one-out’ rule so no new regulation is brought in without other regulation being cut by a greater amount
Target inspections on high-risk organisations through co-regulation and improving professional standards
A review of IR35, as part of a wholesale review of all small business taxation
A review of employment laws to ensure they maximise flexibility while protecting fairness and providing the competitive environment required for enterprise to thrive
Cutting the time it takes to start a new business
Promotion of small business procurement with the aim of 25% of government contracts being awarded to small and medium-sized businesses and publishing government tenders in full online and free of charge
An end to ‘gold-plating’ of EU rules, so that British businesses are not disadvantaged relative to their European competitors.

REC director of external relations Tom Hadley says: “We like the emphasis on cutting red tape and streamlining the regulatory environment. We can also tick off some of the other big calls in the REC pre-election Manifesto like the need to avoid a tax on jobs and to review current procurement procedures. Of course, the concern for many recruiters is the impact of public sector cuts on agency budgets, but we will continue to fight our corner on this and to promote the value of flexible staffing arrangements.”

The Forum of Private Business’s head of policy Matthew Goodman adds: “I’m sure this document will come as a breath of fresh air to many small business owners. In many ways, it reads like a ‘wish list’ of things the Forum has been demanding for several years.

“The regulatory burden imposed on business frequently emerges as one of the main problems facing SMEs, so the agreement to introduce a ‘one in, one out’ rule, together with sunset clauses to kill off outdated legislation, will hopefully go some way to tackling this huge issue.”

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