Blair promises £2bn in red tape cuts
Tony Blair has today unveiled plans to cut red tape by more than £2 billion across 19 different government departments and agencies.
The prime minister has already pledged to cut the administrative burden on businesses, public and third sector organisations by 25 per cent by 2010, but today he set out the 500 areas where ministers believe changes could be made.
Among these are £124 million savings in the planning system, a new way of logging import and export information which could save £60 million a year, and a move to electronic shareholder updates that could save the biggest firms £400,000 per mailshot.
The Health and Safety Executive (HSE) has also pledged to make compliance with its laws easier, and in doing so cut £300 million, without endangering public safety.
The announcement comes after a recent survey for the Confederation of British Industry (CBI) found that 85 per cent of business leaders in the UK’s top 350 performing companies thought there was too much red tape.
Mr Blair announced: “The UK is one of the best places to do business and we need to keep it that way. The exercise to produce these simplification plans has been extensive and far-reaching.
“It demonstrates the commitment across government and the regulators to reduce the admin burden of regulation to the benefit of business, our public services and the voluntary sector.”
CBI deputy director general John Cridland welcomed today’s proposals, saying they focused effort “in the right areas that matter to business”.
“Employment legislation is the biggest regulatory concern for most companies and action here will be particularly important. The plan is an encouraging road map – delivery of it will be the real prize for business,” he said.
Carol Undy, national chairwoman of the Federation of Small Business (FSB) also praised the proposals, saying it looked forward to working with ministers to ensure they were properly implemented.
However, Liberal Democrat trade spokesman Ed Davey warned: “After nine and a half years in office it is rather late for the prime minister to don the mantle of deregulation.
“British businesses will have their cynicism about the present government confirmed when they see this last minute repentance to secure a less tarnished legacy.”
