Governance News from Manifest - ISSN 1745 - 1132

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Standards & Guidance

UK government unveils plans to cut red tape

 

Tony Blair, the prime minister, has released a government action plan designed to cut red tape and save business and the voluntary sector over £2bn in administrative costs. The measures stretch across 19 government departments and plan to cut the administrative burden by 25% by 2010.

 

The Department of Trade and Industry’s contribution is estimated at cuts in administrative costs of up to £700m a year, and includes initiatives which are already being implemented, to automate filing and access at Companies House and allow companies to communicate electronically with shareholders rather than in writing.

 

Pat McFadden, Cabinet Office minister, described the plan as not just a new pledge, but a detailed and specific plan of action. The initiative was welcomed by John Walker, Federation of Small Business policy chairman, but he also warned that there have been too many false dawns on red tape in the past, and officials must ensure the momentum of the announcement is maintained through the measures’ implementation.

 

The Better Regulation Commission, which advises the government on regulation and will review the plans, said that the early signs were positive but it would be looking for more progress in 2007.

 

Brendan Barber, general secretary of the TUC, said that while regulations should be reviewed to ensure they are needed, "promises of an arbitrary yet precise cut of 25% in something that is impossible to measure runs the risk of undermining the case for regulation and feeding red tape myths."

 

A report by the STUC accused the debate on red-tape of “getting seriously out of hand” as a result of “the hysterical contributions of employer bodies”. Grahame Smith, general secretary of the Scottish union body, said swinging deregulation is dangerous for workers, communities and the environment.

 

Links

Department of Trade and Industry

Cabinet Office

Better Regulation Commission

TUC

STUC

 

January, 2007

   

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