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New "One-in, Two-out" regulations reduce costs and bureaucracy

A new “one-in, two-out” rule was announced by the Government on Monday as part of a continued effort to reduce red tape and the cost of bureaucracy for businesses.

Business Minister, Michael Fallon, announced that for every new regulation brought in with an additional cost, the surrounding bureaucracy must be cut back to save double this amount.

The new rule, which will be brought in from January 2013, will aim to offset the financial burdens of domestic regulations on companies and voluntary organisations.

Charges incurred as a result of new regulations must be balanced out by an equivalent reduction of costs around red tape, and the Government said businesses have already benefitted from £1bn savings since 2011.

Michael Fallon commented: “The government is focused on making sure Britain competes and thrives in the global race by helping fire up our private sector and boost enterprise.

“‘One-in, One-out’ has driven a profound culture change across government. Departments are starting to see legislation as a last resort, not the default option.

“But every year businessmen and women still spend too much time and money complying with government regulations, when they should be developing and growing their businesses.

“We are impatient for growth and I’m determined to remove this brake on aspiration. “That’s why we are upping the pace.

“Our new target will require radical thinking right across Whitehall. It will require policymakers to make tough choices, and to think hard about how to get government off the backs of hard-working and hard-pressed businesses.”

The Institute of Directors welcomed the new rule, and said it would enable businesses to grow and create jobs.

Simon Walker, Director General of the IOD said: “I congratulate the Business department on their move to lighten the heavy load of regulation for British firms.

“Business leaders tell us that the amount and complexity of the red tape they have to deal with often makes taking on new staff or extra orders just too risky.

“We simply cannot afford this to continue if we are to rebuild the economy based on healthy growth in the private sector.”

The Business Department said advantages had already been felt in the construction sector in particular, with improved guidance for building on contaminated land, as well as cost and red tape reduction through deregulation of construction contracts.

Further to improved flexibility on auditing for around 100,000 organisations, and the removal of bureaucracy around live music venues for pubs and clubs, savings of £40m per year can be expected for employers as a result of reforms around employment tribunals.

A publication detailing the outcome of government changes will come out at the end of this Parliament, while the Government also made promises to cut back tax administration burdens.

This was posted in Bdaily's Members' News section by Miranda Dobson .