Government’s red tape cutting proposals are disappointing, says IoD

Dated: 18 March 2011

Commenting on Business Secretary Vince Cable’s announcements today on cutting red tape, Miles Templeman, Director-General of the Institute of Directors, said:

“We welcome the attention the Government is giving to the subject of deregulation. Vince Cable’s rhetoric is positive and there are some potentially helpful initiatives in today’s package. Overall, though, the proposals are disappointing. The Government didn’t identify any new laws for removal.

On the positives:

“We welcome the prospect of ‘sunset clauses’ for regulations, and we instinctively like the sound of a ‘copy out’ commitment on EU directives – too many directives are gold-plated by risk averse government lawyers. These measures could limit the negative impact on business of new regulations.

On micro firm exemptions from new regulations:

“This is a small step in the right direction. Over time the Government needs to make the exemption permanent, otherwise there is a danger that when the three-year exemption expires micro firms will be hit by a wall of regulation. We suspect that this unpleasant prospect will encourage many micro firms to comply with new regulations as and when they appear, and not wait for the three-year exemption to expire. We should also remember that large numbers of SMEs have more than ten employees and will get no respite at all from new regulations.

On the absence of proposals to cut red tape:

“But what is really concerning is that Vince Cable didn’t identify any new areas of red tape reduction. Exemptions from new regulations or delays to planned regulations cannot be portrayed as cuts in red tape – the huge existing red tape burden is left intact. Indeed, the Government is actually committed to creating new burdens on business with measures such as the abolition of the default retirement age, new rules on agency workers and auto-enrolment pensions.

“It is therefore essential that ministers throw all their efforts into coming up with some substantial deregulatory proposals. There is no time to be lost. Reheating old announcements on the tribunal system and training rights is not good enough.”

ENDS

Contact Points

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
Tel: +44 (0)20 7451 3392
Mob: +44 (0)7814 386 243
Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

  • The IoD (Institute of Directors) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with upwards of 45,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
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  • In addition, the IoD provides an effective voice to represent the interests of its members to government and key opinion-formers at the highest levels. These include ministers, constituency MPs, Select Committee members and senior civil servants. IoD policies and views are actively promoted to the national, regional and trade media.
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