Vince Cable, the business secretary, has announced that the new ‘one in, one out’ system of regulations will come into effect as from the first of September this year, a move that has been welcomed by the FSB.
The coalition has said that new regulations should only be introduced if they are absolutely essential. A strengthened Regulatory Policy Committee will oversee the system by scrutinising all proposed regulations and EU legislation before policies are formed.
All government departments will have to follow a set of ‘principles of regulation’ when new laws concerning businesses and social enterprises are considered.
Although the FSB welcomes the move, it warns that the committee must have the power to enforce the principles and influence government departments when it comes to regulatory practice.
Jane Bennett, the Head of Campaigns at the FSB, said it was good that the government was going ahead with its promise to improve the regulatory landscape, but in order for the measure to be successful many government departments will have to change their behaviour.
A survey conducted by the Forum last year found that smaller employers spent an average of 37 hours each month on red tape administrative tasks at an annual cost of £9.3 billion. Administering and monitoring legal responsibilities was a major bugbear with 74% of the survey’s respondents and 73% cited understanding new regulations as excessively time consuming. SMEs spend £2.4 billion per year on employment law, £2.1bn on administering health and safety regulations and £1.8 bn on tax.
The BCC has also welcomed the announcement saying that the new scheme will help to boost the UK’s business growth. The Chamber’s director of policy, Dr Adam Marshall, said we now need to see tangible results so that umbrella contractors and businesses get to see the benefits as soon as possible.
Interested parties can have their say on which regulations they would like to see changed or removed completely by visiting the government’s Your Freedom website.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: ein- und ausfahrt by loop_oh
