Are the Government Finally Taking Real Action on Red Tape?
A new announcement from
the government contains good news for small
businesses; it appears that they are finally
taking some solid action on reducing the
burden of red tape.
John Hutton Secretary of State for Business
has brought forward measures to cut red tape
and save business millions of pounds in the
Regulatory Enforcement and Sanctions Bill.
Many businesses are currently losing out
because local authority regulators are
enforcing the law differently across the
country. The Bill would give powers to a
single national body to provide consistent
advice. It will also ensure regulators do
not impose unnecessary burdens.
Rogue businesses also face a crackdown with
regulators being given new powers to tackle
companies who seek to benefit by flouting
the law.
It is estimated that these measures could
save business over £100 million per year.
John Hutton said: "This is about saving
businesses millions by cutting red tape and
delivering better regulation. To help us
achieve this, we will take powers to stop
regulators from imposing burdens that aren't
necessary.
"But we will toughen the sanctions for the
companies who undercut honest businesses or
endanger or rip-off their customers by
flouting the rules. We will come down hard
on the rogues by giving all regulators the
power to hit them where it hurts and impose
sanctions that leave them out of pocket or
out of business."
The measures include:
-
Ensuring both national and local
regulators have access to new
administrative sanctions, such as
monetary penalties and stop notices.
-
Ensuring both national and local
regulators do not impose or maintain
unnecessary burdens on those they
regulate.
-
Setting up the Local Better Regulation
Office (LBRO) to be the expert source of
advice for central Government on the way
local authorities regulate. It will settle
disputes between local regulators and ensure
more consistency for businesses.
An example of the red
tape issues the bill is aimed at removing is
a manufacturer with sites in different areas
of the country, who cleared a new product
line with their primary authority (the local
authority appointed their main regulator).
They then dispatched the product to the
retailer. Despite the Primary Authority's
advice, a different local authority believed
the product violated food imitation
regulations and threatened the store with
prosecution. The manufacturing business
claims this incident cost them £25,000 in
wasted stock.
Let’s hope this is the
start of some real action on red tape, and
that the government meet their target of
cutting the cost of business administration
by a quarter by 2010.
For more information on red tape and legal
matters visit our Business Law section here.
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