Business groups back one-in, one-out scheme

A number of business groups have backed the Government’s new one-in, one-out system for business regulation. Vince Cable announced yesterday that when ministers seek to introduce new regulations which impose costs on business or the third sector, they will have to identify current regulations with an equivalent value that can be removed. Ministers will also be tackling EU regulations and gold plating, it was announced.

Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC), said: “We commend the Coalition for its efforts to reduce the regulatory burden that all too often holds back business growth. Announcements on 'one-in one-out' rules for new regulations, together with stronger scrutiny of both domestic and EU regulatory proposals, are a step forward.

"The Regulatory Policy Committee has already made a real difference - holding Whitehall departments to account by rigorously assessing proposed regulations. At a time when business needs every chance it can get at driving economic growth, the beefed-up role for the Committee is essential.

“In Brussels, improving UK engagement at an earlier stage of EU law making will mean that UK plc has a much better chance of cutting off damaging regulation before it hits businesses, rather than closing the stable door after the horse has bolted.

“Now that the new administration’s regulatory mechanics have been announced, they must show tangible results - so that businesses can see the benefits as soon as possible."

However, the Forum of Private Businesses (FPB) warned that, for the committee to be truly effective in implementing the new system, it must be able to enforce these principles and influence regulatory practice within government departments.

The Forum's Head of Campaigns Jane Bennett said: “"It is good to see the Government pushing ahead with its commitment to improving the regulatory landscape. The concept of introducing regulations only as they are needed is absolutely necessary given the existing burden on small businesses, but it will require a change in behaviour for many government departments."

She added: "The independent Regulatory Policy Committee must be a real watchdog influencing departmental practice if it is to bridge the gap between over-regulation, which is what we have now, and lighter-touch intervention. That means being able to enforce these principles of regulation, which are as yet undefined. As with many of the coalition's new policies, the follow-through is what will be important."