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Tuesday, 29 November 2005

DTI can cut red tape by £1 billion – help us do more

ALAN Johnson has set out how the Department of Trade and Industry will deliver more than £1 billion of regulatory savings by 2010 after publishing details of DTI’s developing simplification plan.

The plan will help DTI deliver a new 25 per cent target for reducing administrative burdens as announced by the Prime Minister at the CBI conference.

The Trade and Industry Secretary called on businesses, large and small, to work with DTI in developing simplification proposals as well as submitting their ideas for cutting red tape via the DTI website, which can be accessed by following this link: www.dti.gov.uk/simplify

The draft simplification plan covers all areas of DTI policy. It includes sweeping changes to make company law more flexible as well as easier to understand, saving business more than £643m in the next five years; transforming the way key agencies such as Companies House and the Patent Office operate through deregulation and simpler electronic filing, registration and search systems. These will save business a further £230m over the same period.

It also features work to cut the burden of company reporting requirements by replacing the Operating and Financial Review with a simpler Business Review in line with the minimum requirements of the EU Accounts Modernisation Directive.

DTI is also leading the way in implementing the Hampton Report’s recommendations. A pilot in the retail sector is already working to cut the number of routine inspections for business by pioneering risk-based approaches. This means shifting attention away from the majority of decent complying businesses and on to those that present the greatest risk.

This is part of a wide-ranging programme on consumer law that includes the review of EU Consumer regulation, the recently announced work on Sunday trading and setting up the Consumer and Trading Standards Agency.

There is also a new programme of work on employment law which aims to simplify rules and improve guidance in those areas business have identified as being difficult to understand. This includes work on the statement of employment particulars, the redundancy law framework, the maternity pay and leave regime, targeted enforcement and inspection in keeping with Hampton principles, and confirms a review of dispute resolution procedures.

The draft plan, published on the DTI website, also includes plans to ensure that future changes to the law are packaged so that business knows exactly what initiatives are coming and when. This in itself is expected to save business nearly £100m over five years – or £600 a year for a small firm. The award winning website www.businesslink.gov.uk will also be enhanced to help businesses, particularly small firms, understand regulation including what does and does not apply to them.

Mr Johnson said: “DTI will be a leader on the Government’s better regulation programme. The draft Simplification Plan I am publishing shows how we will deliver more than £1 billion regulatory savings to business by 2010 with more to come as we develop our ambitious forward programme. This will be a rolling plan, updated and published regularly.

“We are working closely with business in developing the DTI Simplification Plan and need their help to make it even stronger. We want businesses to talk to us about the changes they want to see.”

British Chambers of Commerce director general David Frost said: “Employers warmly welcome this commitment to cut more than £1bn of regulatory burdens. Complicated and costly regulations are one of the main barriers to business growth, especially for smaller companies. Employers will now be looking for the Government to fully implement its programme to reduce the burden of complying with regulations.”

William Sargent, from the Better Regulation Executive, added: “DTI’s draft simplification plan includes measures to decrease the cost of doing business with government, alongside plans to simplify regulation and rationalise inspection. This will make a real difference to every business in the UK. This draft plan goes beyond the £1bn savings to business that DTI promised last year. I congratulate DTI for going public and for asking for feedback on what more can be done.”

Businesses can view the full draft plan and submit views on how DTI can further simplify its regulations through this link www.dti.gov.uk/simplify or email direct: simplify@dti.gsi.gov.uk

Within DTI the Small Business Service will be working alongside policy makers to ensure the needs of smaller businesses are taken into account.