A government bill aimed at streamlining regulatory reform marks a real opportunity to create a culture that is friendlier to business, pressure groups have claimed.
Measures in the Legislative and Regulatory Reform Bill, which faces its second Commons reading today, could represent a “major step forward” in reducing the burden of red tape on British businesses, according to the British Chambers of Commerce (BCC).
But for the reform to be effective, the bill must equip Parliament with the power to scrap costly or superfluous legislation that keeps small companies from growing and budding entrepreneurs from starting up.
“It must be part of a cultural change across Whitehall so that future regulations do not impose unnecessary burdens. This must be the year of delivery,” said David Frost, director general of the BCC.
“Employers are waiting for a net reduction in the costs of complying with regulation, a simplified inspections system and a reduction in the number of forms to be completed.”
Frost pointed out that firms have been hit with extra regulatory costs of almost £40bn since 1998.
John Cridland, deputy director general of the Confederation of British Industry (CBI), agreed the bill could lead to wholesale change but only if government adopts a more risk-based approach to regulation.
“Achieving this culture change will be the real prize for business, and government must ensure the bill delivers meaningful results soon so employers can realise the benefits for their business,” Cridland said.
Companies are tired of overly complex and duplicative regulation, he said, and warned that the bill’s plan to streamline regulators must be done on the merits of each case.
“Simply bundling together dozens of existing bodies into several monoliths does not automatically improve the service,” he said. “Bigger is not necessarily better.”
