The UK government will make cuts of at least £10 billion over the next 5 years in a new Enterprise Bill intended to back business to create jobs.
New measures to support entrepreneurs and job creation were set out in Sajid Javid’s first speech as Business Secretary in Bristol.
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They include
- government commits to Enterprise Bill in first Queen’s Speech
- red tape to be cut by at least £10 billion and for the first time target independent regulators
- EU Commission also set to unveil plans to cut EU red tape today (19 May 2015)
- new Small Business Conciliation Service to help settle disputes over payment
Business secretary Sajid Javid said: "Small businesses are Britain’s engine room and the success of our whole economy is built on the hard work and determination of the people who run and work for them. As Business Secretary I will always back them and, in my determination to get the job done, one of my first steps will be to bring forward an Enterprise Bill that helps them to succeed and create jobs.
"As part of our long-term economic plan, we will sweep away burdensome red tape, get heavy-handed regulators off firms’ backs and create a Small Business Conciliation Service to help resolve disputes.
Business Minister Anna Soubry said the UK government will be asking businesses for evidence to identify and scrap needless burdens at home and in Europe. It’s important government gets behind small businesses – enabling them to get finance, get paid on time and get rid of red tape.
In a radical change, the government’s ambitious target for cutting red tape will look beyond Whitehall and extend to independent regulators for the first time. They will be expected to contribute to a target of at least £10 billion.
Another central measure in the Enterprise Bill will be the creation of a Small Business Conciliation Service to help settle disputes between small and large businesses, especially over late payment practices. Small firms are owed over £32 billion in late payments, but many of them are not aware of their rights or are reluctant to launch legal challenges. This service will build on the existing suite of measures to tackle poor payment practices.
The bill will also support businesses through the extension and simplification of Primary Authority. This scheme allows a business to get advice on regulation from a single local council and this advice must then be respected by all other councils – reducing the time and cost to businesses of having to obey different rules.
The government said it is also expecting the European Commission to announce today proposals to cut red tape in Europe. This follows recommendations for reform from a UK business-led taskforce set up by the Prime Minister that the government has lobbied hard for. Measures being pushed for include a commitment to propose lighter regimes for small businesses in new EU legislation, greater independence for the Commission’s Regulatory Scrutiny Board, and improved consultation and impact assessments.
Simon Goldie, head of asset finance at the finance & leasing association (FLA), said: "We welcome the support for enterprise, but would also like to see the Government provide a comprehensive online directory of finance providers to help firms find the funding they need in a one-stop-shop."
