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To ask the Secretary of State for Business, Innovation and Skills what progress he has made in reducing red tape for small and medium-sized enterprises; and what progress he plans to make in 2013.
[134668]
To ask the Secretary of State for Business, Innovation and Skills what progress he has made in reducing red tape for small and medium-sized enterprises; and what progress he plans to make in 2013.
[134668]
Business of any size is at the heart of our country's economic recovery and future prosperity. One of the central planks in our strategy for growth is reducing the burden of regulation on business.
We have already achieved a great deal in this area.
In January 2011 we introduced the One-In, One-Out rule, under which any increase in regulation must be at least matched by a reduction elsewhere. As set out in the 5th Statement of New Regulation, this has saved business around £836 million. From 1 January 2013 we move to a One-In, Two-Out rule whereby Departments must find double the savings.
We have introduced a “Micro Business Moratorium” under which no new regulations will be imposed on the smallest businesses until 2014, unless there is a special justification.
By the end of 2012, our Red Tape Challenge will have scrapped or reduced over 20% of burdensome regulations identified so far. We estimate that that will save business over £160 million a year. We are on track to identify 3,000 regulations for scrapping by the end of 2013.
Our programme of Focus on Enforcement reviews now under way will improve the enforcement of regulations and reduce associated burdens on industry. We have just launched a review of regulators' appeals processes.
We have so far engaged 611 businesses across 95 local authorities in Primary Authority partnerships—legally binding agreements that provide assured regulatory advice, ensure consistency between local authority areas and reduce duplication of inspections and paperwork. We are seeking views on the implementation of Primary Authority for several new areas of business. The Enterprise and Regulatory Reform Bill currently before Parliament would allow more firms to join the scheme.
We are working hard to reduce the impact of European legislation. We are holding the Commission to account on commitments it made in November 2011 to exempt micro-businesses from future EU legislation unless there are compelling reasons to include them. We are examining existing and forthcoming EU legislation for further opportunities to lighten the burden on small businesses. For example, agreement was reached in Brussels in March to exempt up to 1.4 million UK small businesses from certain EU accounting rules, with UK backing.
We will build on these successes in 2013. Central to this will be the implementation of the package which we announced in the autumn statement.
It is a pleasure to follow the right hon. Member for Bermondsey and Old Southwark (Simon Hughes), who spoke so eloquently about issues relating to the Border Agency.
I would like, if I may, to raise four issues before the House rises. The first is about a constituent who was recently...
It is a pleasure to follow the right hon. Member for Bermondsey and Old Southwark (Simon Hughes), who spoke so eloquently about issues relating to the Border Agency.
I would like, if I may, to raise four issues before the House rises. The first is about a constituent who was recently...
The Government are reducing the overall burden of regulation affecting business. From January we will further tighten the screw on regulation by doubling the challenge from one in, one out to one in, two out. The impact of regulation is independently verified and reported twice a year in the statement of new regulation. We published the fifth statement this week for the first half of next year, which forecasts that by July we will have reduced the annual cost of regulation to business by over £900 million.
The Government are reducing the overall burden of regulation affecting business. From January we will further tighten the screw on regulation by doubling the challenge from one in, one out to one in, two out. The impact of regulation is independently verified and reported twice a year in the statement of new regulation. We published the fifth statement this week for the first half of next year, which forecasts that by July we will have reduced the annual cost of regulation to business by over £900 million.
I was told by a colleague that early in this Parliament a Minister responsible for deregulation—not the current Minister—rushed into a meeting with his colleagues to say that although his civil servants wanted to increase the number of regulations on business by 67 this month, with hard fighting he had beat them down to 57. That is still 57 extra regulations this month. Is my right hon. Friend going to bear down on that and ensure that by the time of the next general election there is a real, dynamic reduction in regulation on business?
I was told by a colleague that early in this Parliament a Minister responsible for deregulation—not the current Minister—rushed into a meeting with his colleagues to say that although his civil servants wanted to increase the number of regulations on business by 67 this month, with hard fighting he had beat them down to 57. That is still 57 extra regulations this month. Is my right hon. Friend going to bear down on that and ensure that by the time of the next general election there is a real, dynamic reduction in regulation on business?
Yes. This Government intend to be the first ever to reduce the overall burden of regulation during their time in office. If my hon. Friend looks at the fifth statement of new regulation, he will see that—significantly—more regulations will be removed over the next six months from January than will be added. As I said, the overall cost reduction to business is nearly £1 billion.
Yes. This Government intend to be the first ever to reduce the overall burden of regulation during their time in office. If my hon. Friend looks at the fifth statement of new regulation, he will see that—significantly—more regulations will be removed over the next six months from January than will be added. As I said, the overall cost reduction to business is nearly £1 billion.
Yes. This Government intend to be the first ever to reduce the overall burden of regulation during their time in office. If my hon. Friend looks at the fifth statement of new regulation, he will see that—significantly—more regulations will be removed over the next six months from January than will be added. As I said, the overall cost reduction to business is nearly £1 billion.
I was told by a colleague that early in this Parliament a Minister responsible for deregulation—not the current Minister—rushed into a meeting with his colleagues to say that although his civil servants wanted to increase the number of regulations on business by 67 this month, with hard fighting he had beat them down to 57. That is still 57 extra regulations this month. Is my right hon. Friend going to bear down on that and ensure that by the time of the next general election there is a real, dynamic reduction in regulation on business?
I welcome that approach, but are the Government also estimating the cost of a lack of regulation such as, for example, the practice of upward-only rent reviews for high street shops, irrespective of falling turnovers? Such rent reviews are heaping further costs on businesses and making them less viable.
I welcome that approach, but are the Government also estimating the cost of a lack of regulation such as, for example, the practice of upward-only rent reviews for high street shops, irrespective of falling turnovers? Such rent reviews are heaping further costs on businesses and making them less viable.
There is downward as well as upward movement in that sector, but I will certainly refer the hon. Gentleman’s comments to the Minister for Housing.
There is downward as well as upward movement in that sector, but I will certainly refer the hon. Gentleman’s comments to the Minister for Housing.
There is downward as well as upward movement in that sector, but I will certainly refer the hon. Gentleman’s comments to the Minister for Housing.
I welcome that approach, but are the Government also estimating the cost of a lack of regulation such as, for example, the practice of upward-only rent reviews for high street shops, irrespective of falling turnovers? Such rent reviews are heaping further costs on businesses and making them less viable.
Recent reviews by my Department through the focus on enforcement initiative have uncovered a range of problems reported by business
about the way that more than 50 regulators enforce the law, including inconsistency and lack of clarity over the charging of fees.
Recent reviews by my Department through the focus on enforcement initiative have uncovered a range of problems reported by business
about the way that more than 50 regulators enforce the law, including inconsistency and lack of clarity over the charging of fees.
As my right hon. Friend will know, regulatory sloth and incompetence are currently damaging a business in my constituency and one in South West Bedfordshire. Will he take steps to ensure that regulators are not incentivised to damage businesses through unjustifiable fees?
As my right hon. Friend will know, regulatory sloth and incompetence are currently damaging a business in my constituency and one in South West Bedfordshire. Will he take steps to ensure that regulators are not incentivised to damage businesses through unjustifiable fees?
I am aware of the issue in my hon. Friend’s constituency concerning the implementation of the biocidal products directive. Systemic, not just isolated, problems are damaging the relationship between regulators and industry. Last month we acted to stop regulator charging regimes that incentivised regulators to increase their costs to industry, and we will place a duty on regulators to bear down on costs and report publicly on how costs and fees are calculated. Regulators will have to demonstrate that they are efficient, and give industry the information it needs to hold regulators to account.
I am aware of the issue in my hon. Friend’s constituency concerning the implementation of the biocidal products directive. Systemic, not just isolated, problems are damaging the relationship between regulators and industry. Last month we acted to stop regulator charging regimes that incentivised regulators to increase their costs to industry, and we will place a duty on regulators to bear down on costs and report publicly on how costs and fees are calculated. Regulators will have to demonstrate that they are efficient, and give industry the information it needs to hold regulators to account.
I am aware of the issue in my hon. Friend’s constituency concerning the implementation of the biocidal products directive. Systemic, not just isolated, problems are damaging the relationship between regulators and industry. Last month we acted to stop regulator charging regimes that incentivised regulators to increase their costs to industry, and we will place a duty on regulators to bear down on costs and report publicly on how costs and fees are calculated. Regulators will have to demonstrate that they are efficient, and give industry the information it needs to hold regulators to account.
As my right hon. Friend will know, regulatory sloth and incompetence are currently damaging a business in my constituency and one in South West Bedfordshire. Will he take steps to ensure that regulators are not incentivised to damage businesses through unjustifiable fees?
The Government are reducing the overall burden of regulation affecting business. From January we will further tighten the screw on regulation by doubling the challenge from one in, one out to one in, two out. The impact of regulation is independently verified and reported twice a year in the statement of new regulation. We published the fifth statement this week for the first half of next year, which forecasts that by July we will have reduced the annual cost of regulation to business by over £900 million.
Recent reviews by my Department through the focus on enforcement initiative have uncovered a range of problems reported by business
about the way that more than 50 regulators enforce the law, including inconsistency and lack of clarity over the charging of fees.
The Government have today laid before Parliament their response to the House of Commons Science and Technology Committee inquiry into the regulation of medical implants in the UK and the EU (Cm 8496).
The Government welcome the committee’s report and its focus on the importance of increasing transparency and accountability in...
The Government have today laid before Parliament their response to the House of Commons Science and Technology Committee inquiry into the regulation of medical implants in the UK and the EU (Cm 8496).
The Government welcome the committee’s report and its focus on the importance of increasing transparency and accountability in...
My honourable friend the Minister of State for Energy (John Hayes) has made the following Written Ministerial Statement.
I am today publishing the response to the Maitland review’s recommendations on the UK’s offshore oil and gas regulatory regime.
On 20 April 2010, the Deepwater Horizon drilling rig, working on the Macondo...
My honourable friend the Minister of State for Energy (John Hayes) has made the following Written Ministerial Statement.
I am today publishing the response to the Maitland review’s recommendations on the UK’s offshore oil and gas regulatory regime.
On 20 April 2010, the Deepwater Horizon drilling rig, working on the Macondo...