Business secretary Sajid Javid has announced new measures to achieve the Government’s £10 billion red tape cutting target. The ‘One-in, Two-out’ rule for new UK regulations is to be increased to a ‘One-in, Three-out’ rule.
The Federation of Small Businesses (FSB) is pleased by the extension and the announcement of a new review into Local Authorities, but warns that the review should include the tax regime.
Commenting on the announcement, Gordon Millward, regional chairman of FSB, said: “Our members are right behind the drive to cut burdensome red tape. They particularly support the setting of stretching targets, including the idea of requiring £3 of savings for every new £1 of regulatory cost.
“This will help as small businesses are increasingly under pressure from a series of significant new challenges like the introduction of the National Living Wage and pensions auto-enrolment, all of them driving up the cost of doing business.
“However, there is still plenty of room for improvement. Today’s review excludes the complex and burdensome tax system, the most often cited example of onerous red tape highlighted by our members.
“FSB calls on Ministers to bring tax measures into the scope of future reviews, as the UK’s small businesses want to see simplification of the tax system. Overall, deregulation should be proportionate, based on robust evidence, and with a clear small business focus to ensure it does not just benefit larger firms.”