The government has tabled amendments to alter a bill designed to reduce red tape after their initial draft caused a constitutional furore.
Legislative and Regulatory Reform Bill was introduced to remove laws embedded in primary legislation which hampered business growth.
However, it soon became apparent that the powers in the bill were so open ended that they could be used by ministers to ‘amend, replace or repeal’ existing legislation without the approval of Parliament.
Dubbed the ‘Henry VII Bill’ the measures were panned by MPs, business lobby groups and entrepreneurs who while welcoming moves to remove unnecessary burdens on business, were alarmed by the perceived constitutional threat posed by the bill.
Following warnings from the House of Lords that the bill would not get through, the government has now brought in ‘safeguards’ that they say will ensure the bill is only used to cut red tape.
The amendments include providing a veto that can be exercised by parliamentary committees and a clearer definition of when ministers will be able to make orders to change existing legislation.
Jim Murphy MP, the cabinet office minister responsible for the bill said it would ‘be used to deliver reductions in unnecessary red tape’.
John Cridland, deputy director of the CBI, said: “It is imperative that we do not lose sight of the crucial benefits that this bill promises to bring to UK business.
“The bill is now focused explicitly on delivering better regulation, and the time has come to get on with the task of removing barriers to productivity and delivering the reductions to unnecessary red tape that business is crying out for.”
© Crimson Business Ltd 2006
