Cable aims to tackle excessive regulation

Fri 04 Jun 2010

The government has outlined plans to stop imposing a "deluge" of new regulations on British companies.

According to business secretary Vince Cable, an excessive number of rules have been "choking off enterprise" in the UK for too long.

He said the country must move away from the idea that regulating is the only way to solve problems.

The coalition government has outlined plans to create a new Star Chamber which will spearhead its efforts to free businesses from many regulatory burdens.

Mr Cable will chair the Reducing Regulation Committee, which will make improving the regulatory framework for small businesses one of its key priorities.

The business secretary said the drive to reduce regulation will work in tandem with the government's environmental strategy.

Mr Cable acknowledged that implementing these reforms at a time when the UK is aiming to meet its social and environmental ambitions will not be easy.

However, he said this "big task" is one that is "worth striving for".

The move has been welcomed by the CBI, which said businesses have been faced with an "ever-growing burden of regulation" in recent years.

James Oxley, a solicitor at Winckworth Sherwood, added: "It may seem ironic to some that the Companies Act 2006, which was designed amongst other things to simplify and decrease the regulation of smaller private companies, is in fact the longest ever piece of legislation made.

"It will be interesting to see what further regulations are proposed in order to further de-regulate British companies."