The key facts
- The Treasury estimates savings from simplifying rules at almost £800m in administrative and tariff costs
- The government has set a target to reduce regulation by 25% by the end of the current parliament
- The Conservatives said Labour's policies have only made things worse for business
Plans to cut red tape ahead of the budget
Chancellor of the Exchequer John Healey announced plans to cut 'form-filling and pointless paperwork' to save British businesses up to £800m. The regulatory changes were announced ahead of Healey's first budget, which will take place on Wednesday. According to ministers, the measures will reduce excessive bureaucratic burdens on companies and form part of broader efforts to support households and businesses amid rising costs.
What the changes involve
Healey acknowledged that companies are 'fed up with form-filling and pointless paperwork', which take up time and money that could be invested in growth. He became the latest chancellor to promise to cut red tape, saying it would give businesses 'room to breathe' to invest and create jobs. According to the Treasury, the changes should simplify compliance guidance and reporting rules, with savings of almost £800m in administrative and tariff costs. The government has also set a target to reduce regulation by 25% by the end of the current parliament.
Reaction from the premier and business
Prime Minister Andy Burnham and Healey are expected to meet a number of business leaders on Friday at No 10 North. Burnham called it unfair that 'pointless bureaucracy holds back' hard-working people from growing their businesses: 'If you run a company, you want to spend your time serving customers, creating jobs and growing the firm, not filling in unnecessary forms.' CBI chief Rain Newton-Smith welcomed the plans but noted that the real test would be the delivery of the reform itself.
Conservative criticism
Shadow Chancellor Andrew Griffith said Labour had 'finally admitted' that endless bureaucracy hits businesses and destroys jobs. According to him, the employment law has only 'made things worse and created a youth employment crisis'. 'John Healey must get a grip in his budget next week. He must back our Conservative plans to cut welfare and lower taxes to get Britain working again,' Griffith said.
Image source, PA John Healey becomes the latest chancellor to pledge to cut red tape for businesses ahead of his first Budget
