11 December 2006
CAB/073-06

A government-wide action plan identifying over 500 ways to reduce red tape was unveiled by the Prime Minister today. The government ‘Simplification Plans’ will save business and the third sector over £2 billion in administrative costs.

The detailed measures, across 19 departments and agencies, have been identified as a result of comprehensive consultation with business, public and third sector organisations. The aim is to cut administrative burdens by 25% by 2010*.

For all sizes of business - from Canary Wharf to corner shops - the Government recognises that constant and uncoordinated regulatory changes can inhibit the business environment and that more can be done to make it simpler.

Speaking ahead of a business, public sector and third sector meeting at No 10 today, the Prime Minister said:

‘The UK is one of the best places to do business and we need to keep it that way. The exercise to produce these simplification plans has been extensive and far-reaching. It demonstrates the commitment across government and the regulators to reduce the admin burden of regulation to the benefit of business, our public services and the voluntary sector. These are thorough and detailed action plans that will deliver year-on-year reductions in the administrative burden of regulation.’

Some examples from the plans include:

• The Companies Act will introduce fundamental reforms that will deliver estimated administration savings of almost £150 million.
• The International Trade Single Window will allow traders to lodge information with a single body to fulfil all import and export requirements Saving around £60 million a year.
• Initiatives to deliver a simpler, faster and more efficient planning system will save £124 million. It will be possible to submit a single national planning application electronically, judged against more consistent criteria, increasing certainty for those using the system.
• Retail Enforcement Pilots are establishing new ways of working between trading standards, environmental health, health and safety and fire authorities, resulting in up to 33 % fewer inspections for compliant businesses. The scheme will be rolled out to 70 new local authorities from 2007.
• Health and Safety Executive (HSE) committing to savings of over £300 million through making compliance easier without compromising safety.

The Government is also committing to three important long-term supporting measures. These are: upgrading the web portal through which simplification ideas can be submitted by the public; a campaign to identify regulations which conflict or overlap; and annual updates on progress against the simplification agenda.

Leading the plans across government and also hosting today’s business event at No 10, Cabinet Office Minister Pat McFadden said:

‘Businesses repeatedly cry out for government to cut through red tape and feel they have heard it before. Today we are announcing not a new pledge but a detailed and specific plan of action, involving 500 initiatives to ease the administrative burden. We will continue to work in collaboration with business to build on these initiatives and to make billions of pounds worth of real savings.’

Pat McFadden also published the Cabinet Office simplification plan, simplifying regulations for the Third Sector.

‘The Third Sector plays a vital role in civil society and in tackling social exclusion. We must break down barriers to their involvement ensuring that, where it is best placed to do so, the sector can deliver its expert goods and services. The Cabinet Office is working as its advocate across government to ensure we improve the regulatory regime it operates in.’ he said.

Plans to remove unnecessary red tape while maintaining the protections which ensure public confidence in the Third Sector remain include:

• Reducing data and information demands - exempting 56,000 charities from completing sections of their annual return forms. Potential savings of at least £2.2 million.
• Developing online systems to make it easier for charities to register and submit annual reports and accounts.
• Simplified procedures around grants relating to children and young people will reduce the time voluntary organisations spend bidding, reporting and monitoring. Benefiting the sector by around £430,000.

Notes for Information

1. *The Administration Burdens measurement exercise identified administrative costs of £13.7billion, post business as usual costs.
2. A full list of the regulations and links to the departmental reports can be found on the Better Regulation Executive website.
3. The Better Regulation Commission will independently scrutinise all Simplification Plans. Their findings will be posted on www.brc.gov.uk
4. Simplification Plans are just one of the many strands of Better regulation activity. Recently the Government has:
   • Accepted the Davidson Report recommendations on ten specific simplification proposals in ten legislative areas including consumer sales, financial services, transport, food hygiene and waste legislation.
   • Accepted the Macrory Review of Penalties recommendations that aim to ensure regulators have access to a flexible set of modern, fit-for-purpose sanctioning tools that are consistent with a risk based approach to enforcement.
   • Passed the Legislative & Regulatory Reform Act (2006) which aims to make it quicker and easier to tackle unnecessary or over-complicated regulation and help bring about a risk-based approach to regulation.
   • Announced a package of measures to support local authority enforcement of regulation. Eighty percent of inspections are carried out by local authorities.
   • Been at the forefront of EU efforts to improve and simplify the European regulatory environment.

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