Small businesses have called upon the new secretary of state for business and enterprise to focus on cutting red tape as well as ‘better regulation’.
The Forum of Private Business (FPB) has made the appeal in response to a new government report, introduced by the newly appointed minister for the Department of Business Enterprise and Regulatory Reform (DBERR), John Hutton.
Earlier this week, Hutton outlined the key points of the report entitled ‘Next steps to regulatory reform’, which seeks to encourage enterprise by making regulation less complicated.
He said: “We are committed to reducing the burden on business of regulation. But we also want to make it easier for businesses to meet their legal obligations with clearer guidance and better communication.”
However, FPB policy representative Martin Smith said that while the document re-iterated many ‘old’ promises, it did little to suggest that real progress was being made in cutting the administrative burden on small firms.
“The government’s promised actions are limited entirely to ‘better’ regulation, and there is no recognition at all that a reduction in the stock of regulations is necessary,” Smith said.
The FPB warned that this approach could lead to a belief that the government is delivering on its pledge to cut red tape by 25%, without actually making any real changes for small businesses.
However, the organisation has applauded certain aspects of the publication, such as the news that 18 government departments have now committed to meet the target of cutting red tape by 25% by 2010, which could result in £2bn worth of savings.
© Crimson Business Ltd. 2007
