DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2007/130)
issued by The Government News Network on 11 December 2007
Cuts to red tape
are saving UK businesses and third sector organisations more than
£800 million per year, according to a Government report released today.
The report - Delivering Simplification Plans - outlines more than
280 government initiatives to tackle red tape, more than one
initiative for every working day.
Covering 19* departments and agencies, it shows Government is on
target to hit its goal of saving business and the third sector
over £3.5 billion in administrative costs by 2010.
Practical measures include the removal of the need for companies
to hold an AGM, a faster process for planning consents, halving of
the number of health and safety forms employers have to complete,
and cutting of redundant licenses in a range of sectors.
Public sector workers benefited from a cut in the average length
of a school inspection from five to two days and the introduction
of hand-held data devices that will save individual police
officers nearly an hour per day.
Secretary of State for the Department for Business, Enterprise
and Regulatory Reform John Hutton said:
"Today's plans demonstrate we are making significant
headway on what is a difficult and challenging agenda.
"By tackling redundant regulation we are making a difference
to the way people run their businesses and in their everyday lives.
"But we are not complacent. Government must continue to back
up its proposals with credible action across all sectors. We are
also outlining ways to tackle our new target to cut public sector
bureaucracy by 30 percent by 2010 in public sector."
In addition to reducing administration burdens such as form
filling and record keeping government has delivered a further £700
million in savings for business, charities and the public sector.
This was achieved by tackling the wider cost of complying with
regulations such as investment in equipment.
Measures delivered include:
* Over 50 percent of health and safety forms which duplicated
information already gathered no longer need to be submitted by businesses
* Around 60,000 private companies no longer need to appoint a
company secretary, saving each of them £50-£100 each a year. This
gives a total of £450,000 annual savings
* 500,000 - 750,000 private companies no longer need to hold an
AGM, as part of wider changes to company laws saving £45m a year
in administration
* Nearly half a million planning applications from business stand
to benefit from new, e-enabled processes. Savings are delivered
through lower costs (at least £120 per application) and reduced
waiting times (11-13 days) and £7.2m annual savings have been
delivered so far.
* Since 2006 the average length of a school inspection has been
cut from five to two days. The notice period has also been reduced
from ten weeks to five days, reducing the time schools and
teachers spend dealing with inspections
* Police officers will continue to see improvements in their
daily activities with £50m investment in the rollout of new
technologies, including 10,000 hi-tech hand hand-held data devices
saving officers an average of 54 minutes per day.
* The Department of Health has pledged to reduce the number of
arm's length bodies that it sponsors by 50 percent from 38 in
2005 to 19 in 2008. This will free up £500m a year for frontline
services by April 2008. Twelve such bodies have already been cut
resulting in savings of £150m.
Notes to Editors
1. *19 departments and agencies are publishing individual
simplification plans.
2. 19 departments and agencies have committed to 25 percent net
reduction, and all are publishing second set of Simplification
Plans. Measures delivered by the Financial Services Authority have
been included in the Summary Document being published today.
3. **The Health & Safety Executive published their
Simplification Plan on 3 December.
4. In May 2005, government departments agreed to cut by 25% the
£13.4bn of annual administrative burdens placed on the private and
third sectors by 2010. Departments agreed to set out how their
Simplification Plans showing how they intended to cut red tape and
give a transparent statement of progress in rolling
'Simplification Plans' published annually, beginning
December 2006
5. Details on the Better Regulation Executive can be found at: http://bre.berr.gov.uk/regulation.