Simplification saves businesses billions

The government’s simplification programme has introduced 280 regulatory changes to try to cut out unnecessary paperwork over the last 12 months. The improvements have led to savings of almost £3bn according to a report published by the Better Regulation Executive (BRE).

Ian Lucas, minister for business and regulatory reform, said: ‘Simplification is making a real difference to the everyday lives of businesses, helping to make things as simple as possible. Individual measures may look small but it is overall impact that adds up to real savings. And support from the business community has helped make sure that savings to businesses are felt on the ground.

‘The programme also shows real change across government in its attitude towards regulation. Delivering the right business environment to promote growth relies on creating a flexible regulatory framework that minimises costs to business but ensures essential protections and rights are in place. Better regulation, with simplification at its core, is making that possible.’

In 2005 the government analysed 1,400 regulations and found that the administrative burden was costing businesses £13bn. The savings reported by the BRE represent a 22 per cent reduction in these costs, signalling that the government is well on its way to achieving its target of a 25 per cent reduction by May 2010.

The BRE report also revealed that central government has reduced the number of information requests on front-line public sector workers, such as nurses and police, by more than 30 per cent and cut more than £1.3bn in wider costs of complying with regulation.

To read the report in full visit the Department for Business, Innovation and Skills website.