Business secretary Vince Cable today claimed government regulatory changes will save businesses some £16 million.
Part of the Red Tape Challenge savings have come from the introduction of the “One In, One Out” regime – which only permits a new regulation to be introduced once another one has been removed from the rule book.
Cable said he was aware that ‘most’ of his ministerial colleagues regard the “One In, One Out” policy as an ‘absolute pain’ but says the Department of Business, Innovation and Skills believes the policy is a key factor in savings for businesses.
He said: “The One In, One Out rule, the first of its kind anywhere in the world, has begun to turn back the tide since it took effect in January 2011.
“Every time they (ministers) bring a new regulation, there is a big hurdle to cross.
There will normally be a wounded-sounded letter saying, ‘I am 100% with you on fighting regulation, but you surely didn’t mean me.”
Cable said now is not the right time for ‘heavy-handed interventions from government’.
He explained: “Reaching for the statute book every time a new policy issue arises has a negative effect on enterprise.
“That is not to say that all regulation is harmful. It isn’t. Carefully calibrated consistent interventions can help markets function better, give certainty to business and confidence to consumers.
“But I do believe that an unthinking rush to regulate has been the default position in Whitehall for too long.”