Employment Law | Bonfire Of Red Tape Not Burning Brightly

According to a report published last week by the British Chambers of Commerce (BCC), the amount of red tape surrounding the running of a business, particularly a small one, is still holding back growth, despite the Government’s pledges to slash it.

The BCC undertook an extensive study of the Government’s policy of “one-in, one-out”, which should have meant that any new regulation imposed on business would have seen an existing measure of “equal value” removed.

However, the study found that half of all new proposals for regulation were not in the “one-in, one-out” range and had, in fact, increased from 42 per cent last year.

The report also highlighted that the regulatory process is still not transparent, that the quality of regulations needs to be improved and that some government departments are not taking the taking the deregulatory process seriously.

BCC Director General, John Longworth said that the Government had “no chance of implementing its deregulatory promises” until the one-in, one-out pledge was applied. The business group called for an urgent review to ensure that “all relevant regulations are within the scope of the system.

“The Government has a long way to go before it can claim it has got to grips with its regulatory output. Whitehall is holding deregulation back and often creating badly-designed regulation, and at the same time businesses are telling us that the weight of European legislation is making them less competitive in global markets,” Longworth added.

While the Federation of Small Businesses (FSB) said the research revealed that “the reality, as opposed to the promises, is that the amount of regulation strangling small businesses is increasing, not decreasing”.

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