An end to excessive regulation?

Posted: Thursday, 3 June 2010 @ 18:54
An end to excessive regulation?

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The government has taken its first steps to reducing the amount of red tape which is stifling business, particularly SMEs.

The Business Secretary, Vince Cable, has announced an action plan to tackle excessive regulation. It includes the following:

  • The creation of a new Cabinet “Star Chamber”, officially to be called the Reducing Regulation Committee, which will be chaired by Mr Cable. It is tasked with “stress-testing” proposed regulations to make sure that only those that are of suitable high quality (i.e. meet good regulation principles) and are of suitable high priority get through.
  • An immediate review by the new committee of all regulation in the pipeline introduced by the last government. In March 2010, the Better Regulation Executive identified some 200 new proposed regulations to be brought in during the year to April 2011 at a cost of £5 billion, and regulation beyond that in the pipeline costing about £19 billion.
  • Establishing a new “Challenge Group” to come up with innovative ways to achieve social and environmental goals in a non-regulatory way. This group will work with experts, including Richard Thaler, the US behavioural economist.
  • Introducing the “one in one out” approach to regulation whereby new regulation can only be introduced if old regulation is removed. The idea is that the total cost to business of new regulation must be less than that of old regulation.

Mr Cable said, “The deluge of new regulations has been choking off enterprise for too long. We must move away from the view that the only way to solve problems is to regulate.”

Well said, Mr Cable, I totally support this new approach. Let’s hope that this leads to the choking of SMEs by excessive red tape coming to an end and businesses being able to breathe freely again.

Gary Cousins
Business Solicitor 



Blog by Gary Cousins
Gary has been providing legal advice to shareholders, directors and business owners for over 25 years. Specialising in dispute resolution Gary is based in Birmingham with clients throughout the UK and overseas. View profile
Call Gary on +44 (0)121 778 3212 or by email
This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this article applies to your particular situation. We offer a free telephone consultation to discuss your particular circumstances.

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Thank you. Your response is great, very straight to the point! Hopefully this will bring an end to the matter. I will certainly be recommending your services as I am very impressed with the prompt dealing of this matter.
Janet Burbidge

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