The government has begun consultation on its latest effort to reduce the regulatory burden on businesses.

In an attempt to get rid of unnecessary and badly targeted legislation, the Better Regulation Bill set out ways ministers can quickly and effectively implement measures to remove rules off the statute book.

Writing in the Financial Times, cabinet office minister John Hutton admitted the current system of regulatory reform orders, creating powers to ditch unrequired rules, were 'drawn too narrowly and can in themselves be too burdensome to use.'

In 2002, prime minister Tony Blair pledged 260 measures to cut regulation. The Cabinet Office set a target of 60 orders to be passed this year, but official figures released on Tuesday show only 27 of such orders have been made.

First outlined in Gordon Brown's last Budget, the new Bill outlines how businesses in safe sectors with a proven track record will be subject to less inspections and fewer regulations, while 35 regulators will be merged into 9.

James Walsh, from the Institute of Directors, said: "This is a good package of proposals, but it must be turned into action. The government does appear to be genuinely committed to raising its game on Better Regulation, but only solid results will convince our members that this exercise is different from the false starts we have had in the past."

The commencement of consultation on the Bill coincides with a row over how far business complaints about regulation have persuaded the government to ditch useful rules.

Environment campaign group Friends of the Earth said the Confederation of British Industry (CBI), Britain's biggest business group, 'routinely exaggerates the costs of regulation, ignores the benefits and falsely presents its anti-regulatory position as if it has consensus support across the business community.'

Friends of the Earth's executive director, Tony Juniper accused the government of being 'in thrall' to the CBI and wrongly 'accepting its claims at face value.'

The CBI hit back at what it called a 'gratuitous attack'.

"Friends of the Earth are rattled by losing the intellectual argument on environment policy. Their response is a selective and disingenuous attempt to blacken the CBI's good name," said CBI director general John Cridland.