One-in, One-out red tape regulation ‘effective’ says government

Savings to UK businesses from cuts and regulation have outweighed the costs of new domestic regulation by £850 million, according to government statistics.

Coalition government plans to cut bureaucracy and red tape are lessening the burdens on companies to do business, the government says.

Statistics released showing the effect of the One-in, One-out regulation, a legislation meaning that any new change that imposes a net cost to business must be offset by a reduction in regulatory costs elsewhere, shows that £850 million has been saved since 2011.

So far changes from the Department for Business, Innovation and Skills (BIS) have included amending the restrictions that existed involving the move between International Financial Reporting Standards (IFRS) and UK Generally Accepted Accounting Principles (UK GAAP). Businesses can now choose the most appropriate set of accounting rules.

Further changes now mean a ‘simplification’ of criminal records disclosure allowing firms to conduct criminal records checks in a more portable way and lessen the need for repeat processes.

The BIS’s audit exemptions also now give small businesses more flexibility in determining the submitting of company records.

Mark Prisk, business and enterprise minister, comments, ‘It demonstrates the effectiveness of the One-in, One-out system, where government only regulates when it is in the interests of the economy or clearly necessary for public safety.

‘Yes, it will take time for the difference to be felt by business, and some sectors will feel greater relief sooner than others. But I was encouraged by the recent Business Perceptions Survey, which showed that fewer firms feel that regulation is an obstacle to their business compared to 2009.’

The findings come from the government’s fourth Statement of New Regulation, a cumulative report which has so far been published in April and September 2011, February 2012 and now July 2012.

Hunter Ruthven

Hunter Ruthven

Hunter was the Editor for from 2012 to 2014, before moving on to Caspian Media Ltd to be Editor of Real Business.

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