Michael Fallon, Business Minister, has announced that the government is to amend its current policy of “one in, one out” regarding new regulation to the more radical approach of, one in, two out.
From January 2013, any new regulation which imposes a new financial burden on firms must be offset by a reduction in red tape that will save double those costs. This new initiative will be imposed across every Whitehall department from January 2013 and will apply to all domestic regulation affecting business and voluntary organisations.
Michael Fallon has acknowledged within this announcement the excess of time and money which is spent by business men and women every year complying with Government regulations, and that instead “they should be developing and growing their businesses”.
Included within this initiative a radical package of employment tribunal reforms is expected to deliver £40 million worth of savings per year to employers, and from April 2013 thousands of businesses will benefit from an exemption from pro-active health and safety inspections.
Although this announcement might not benefit businesses and employers immediately, it is a positive step in the right direction in reducing complex, costly and timely regulation.