Business will be
freed from the burden of red tape under a package of sweeping
reforms to regulation, it was announced today.
In a speech to the Federation of Small Businesses in Liverpool,
Mark Prisk revealed Business Secretary Vince Cable’s plans for a
range of measures to be included in the Growth Review that will
allow businesses to grow, including:
a public audit of almost 22,000 statutory instruments that are
currently on the statute book; anda moratorium to exempt
businesses with fewer than ten employees and genuine start ups
from new domestic regulation for three years.
For the public audit, the legislation will be grouped into themes
on a dedicated website and businesses will be asked to tell the
Government what they think of those regulations and how to improve
the system.
The intention will be that any overly burdensome or unnecessary
regulations are removed unless Departments can prove there is a
good reason for them.
The moratorium will be preceded by extensive engagement with
businesses and other groups over the coming weeks to ensure that
this is introduced in a way that does not have any unintended
consequences for business.
Business Secretary Vince Cable said:
“I promised bold action to remove barriers to growth. Today, I am
setting out how this will happen in the vital area of business
regulation.
“A moratorium for the smallest and genuine start-up companies
from regulations alongside the removal of obligations for flexible
working and giving time off to train will be a real boost to
businesses. It will let them concentrate on growing their company,
not thinking about dealing with the latest request from
Government.
“It’s not right that businesses should have to deal with years of
Government intervention by abiding by arcane rules. That’s why I
am asking them to help us take a comprehensive look at the stock
of regulation and tell us how rules and regulations affect them.
This is the first time such a radical look at the statute book has
been taken and we’re giving you the chance to play your part. I’d
encourage all businesses, large and small to grab it with both
hands.”
Other measures, identified as part of the growth review into
regulation include:
Repealing the regulations extending the right to request
flexible working to parents of 17 year olds for all businesses,
which was due to be introduced on 6 April 2011;Not extending the
right to request time off to train for firms with less than 250
people; Introducing more transparency into the Government’s
One-in, One-out rule by publishing the opinions of the Regulatory
Policy Committee where they do not believe the evidence supports a
new regulation; andLightening the audit requirements of smaller
firms by matching the minimum required by EU directives, freeing
small companies from unnecessary audit fees.
Chairman of the Better Regulation Executive Sir Don Curry said;
‘For some time now, I have been pressing Government to recognise
the burden regulation places on our small and micro-businesses.
So, I am delighted that this exemption has been introduced. I
would urge Government to continue to look at measures such as this
to continue to help economic growth.”
The Government also announced that next week the Government will
be publishing details of how it is introducing sunset clauses into
new regulations. New regulations will be reviewed after five years
to see if they are effective, if they are still necessary, and
whether the costs to business can be reduced. If they are found to
be working as expected, the regulation will be extended for a
further five year period.
Notes to editors:
1. The transcript of Mark Prisk’s speech to the Federation of
Small Businesses is available at: http://www.bis.gov.uk/newsroom
2. BIS' online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom
for more information.
Contacts:
BIS Press Office
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Nick Evans
Phone: 020 7215 3496
nick.evans@bis.gsi.gov.uk