Chambers query progress on cutting red tape
BUSINESS leaders have questioned Government claims that Ministers are making real inroads in tackling red tape.
New figures from the Department for Business, Innovation and Skills suggest that the overall costs of regulation have been cut by £3bn for the last year.
But the British Chambers of Commerce said that disguised the fact that the net regulatory cost to business for the second half of the year is £45.2m and did not include the impact of new rules on agency workers.
Dr Adam Marshall, director of policy and external affairs at the British Chambers of Commerce, said: “This statement shows that ministers have failed to stem the flow of new regulation – even on their own measures. No Government, anywhere, should impose £45 million in new costs on businesses in the midst of a bumpy recovery and uncertain global economic climate.
“For business, this is where ministerial rhetoric comes crashing down and reality bites. The argument that ‘regulation could have been much worse’ falls flat in the real world, where patience on de-regulation is wearing thin. Ministers have promised much and must deliver. “
The Government insisted the new figures showed that the savings from deregulatory measures were greater than the costs from new regulations and nine Government departments had reported a cut in regulatory costs to business.
Business and Enterprise Minister Mark Prisk said: “During 2011 we have made real progress in cutting the costs of red tape for businesses. As well as the £3bn saving for employers from the new indexation of pensions, we have seen a capping of other regulatory costs, and a substantial rise in the numbers of deregulatory measures.
“This is an encouraging sign that the culture in Whitehall is beginning to change. People are beginning to realise that regulation must be the last resort, not the first option. There is much more to do – especially so that businesses really notice the difference – but this first year is very promising.”
