Chancellor John Healey has unveiled proposals to cut some £800 million worth of red tape that businesses face, describing the measures as a move to reduce "form-filling and pointless paperwork."
The plans, designed to give businesses "breathing space," come ahead of Healey's first Budget next week, in which he has pledged to ease cost pressures on both companies and households. He and Prime Minister Andy Burnham are due to meet small business leaders at No 10 North on Friday.
Measures to cut regulatory burden by 25%
The announcements form part of a broader drive to reduce the regulatory admin burden on businesses by 25% before the end of this Parliament. Streamlined reporting requirements are expected to save £290 million; easing "duplicative reporting burdens" for asset managers £105 million; and cutting red tape for buying and selling homes £116 million for businesses in the transaction chain.
Extending tariff suspensions on more than 250 products is due to save up to £155 million, according to the Treasury. The pausing of import tariffs across sectors including chemicals, plastics, automotive and food and beverages was due to expire at the end of December but is being extended for another year. The remaining cost-saving measures will be outlined in the Budget.
Leaders back the plans
Mr Burnham said: "If you run a business, you want to spend your time serving your customers, creating jobs and growing your firm, not filling in unnecessary forms. It's not right that pointless bureaucracy gets in the way of people working hard to build something that matters to their high street."
"So we're getting government off their backs and giving businesses the breathing space to grow. Because when businesses succeed, they create good jobs, strengthen their communities and bring growth to every part of the country."
Mr Healey said: "British firms are fed up with form-filling and pointless paperwork that eats into valuable time and money when they simply want to get on with running their businesses. That is why we are cutting unnecessary bureaucracy and giving businesses the breathing space they need to invest, innovate and create good jobs."
Fiscal pressures and opposition response
Government borrowing surged beyond forecasts to £24.5 billion last month, throwing into sharp relief the constraints facing the public finances ahead of the Chancellor's Budget. Mr Healey is anticipated to raise taxes on banks as escalating borrowing costs erode his fiscal headroom. He has dismissed calls to increase capital gains tax at the Budget, amid fears it could stifle economic growth.
Shadow chancellor Andrew Griffith said: "Labour have finally admitted that endless red tape is hammering businesses and killing jobs across the country. But despite warnings from business and the Conservatives, Labour pushed ahead with Angela Rayner's union-inspired, 330-page Unemployment Act, which is only making the situation worse and has created a youth jobs emergency."
"John Healey must get a grip in his Budget next week. He must back our Conservative plans to cut welfare and cut taxes so we can get Britain working again."
