In his first speech since being appointed Business Secretary, Sajid Javid pledged to cut a further £10 billion of ‘red tape’ over the term of this parliament “in order to boost the ability of British business to grow, both at home and overseas”.
He said that he is looking to help small businesses and described them as the “engine room” of British industry.
“We will sweep away burdensome ‘red tape’ and get heavy-handed regulators off firms’ backs.”
Mr Javid said: “This will be the first time in modern history that a Government has reduced ‘red tape’ and then continued with reductions in the next parliament.”
“Reforms under the previous Government had already made “a big difference” and, as a result, “business is enjoying simpler audits, less bureaucracy and fewer employment tribunals”.
He added: “Car mechanics and valets no longer have to do training that’s only useful to lorry drivers, and if you leave your sandwich on the bus, the bus company no longer has to hold on to it for 48hr before putting it in the bin. Come Christmas, you will be able to buy a box of crackers without having reached the age of consent.”
Reacting to the speech, which was made on 19 May at the Engine Shed business centre in Bristol (the city where Mr Javid grew up), British Chambers of Commerce director-general John Longworth said: “I sat on Mrs Thatcher’s de-regulation taskforce and put a lot of effort in, but I came out very disappointed. Every government since then has said they will cut or limit regulation and has signally failed to do so.”
In fact, talk of cutting ‘red tape’ goes back much further; as President of the Board of Trade, future Prime Minister Harold Wilson announced a ‘bonfire of controls’ as far back as 1948.
Government claims to have cut £10 billion of ‘red tape’ in the last parliament have not been independently assessed by the National Audit Office.
A spokesman said: “Government departments do not routinely evaluate the impact on business of a regulation, once it has come into effect, so they are not in a good position to make adjustments to improve regulation in light of experience.”
On the same day as Mr Javid’s speech, the European Commission launched its latest attempt to cut ‘red tape’, the Better Regulation Package.
An EC spokesman said: “The reforms will improve the quality of new laws — through better impact assessments of draft legislation and amendments — and promote constant review of existing EU laws, so that EU policies achieve their objectives in the most effective and efficient way.”
In his speech in Bristol, the Business Secretary also gave details about the Enterprise Bill that was announced in yesterday’s Queen’s Speech. This will include provisions for a small-business conciliation service to help settle disputes over payment with larger firms.
“Small firms are owed over £32 billion in late payments, but many of them are not aware of their rights or are reluctant to launch legal challenges. This service will build on the existing suite of measures to tackle poor payment practice.”