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20:43 on Monday
30 December 2002

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Directors welcome government to cut regulations


Company directors in Cambridgeshire have welcomed the launch of a government initiative to reduce or eliminate unnecessary regulatory burdens as “a big step in the right direction”. However, they want the reforms to be sustained and extended to include complex rules that create obstacles to employing people.

Stephanie Smye, chairman of the Eastern Branch of the Institute of Directors, said the government’s newly published Regulatory Reform Action Plan contained an impressive list of improvements.

“Although some of the announced changes are individually small in scope or have been announced before, this is an important first step and is something for which we have campaigned in recent years,” she said. “The government has said it is open to further ideas and we now need to see the commitment to regulatory reform sustained.

“In particular, we need the next round of reform to tackle the key area of labour market regulation. A reduction in the regulatory burdens that actually make it difficult to employ people would bring significant economic benefits to the UK.”

Miss Smye has often complained about the volume of European Union and UK government red tape that diverts business leaders from running their companies and often acts as a deterrent to creating new employment.

The new Regulatory Reform Action Plan commits the government to introduce legislation only where necessary and to deregulate and simplify existing legislation wherever possible.

The plan brings together over 260 proposals for changes that will bring benefits in three specific areas: businesses, charities and the voluntary sector; the wider public sector, including local authorities and Non-Departmental Public Bodies; and individual citizens.

A full copy of the Regulatory Reform Action Plan is available at  www.cabinet-office.gov.uk/regulation/actionplan 

February 2002

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