UK coalition aims to cut back business regulation

Britain's Conservative-Liberal Democrat government said it would review all 308 changes to business regulation planned by the outgoing administration.

UK coalition aims to cut back business regulation

Britain's Conservative-Liberal Democrat government said on Wednesday it would review all 308 changes to business regulation planned by the outgoing Labour administration to try to reduce red tape for firms.

The plethora of new rules ranged from raising the share of renewable energy in electricity generation, and creating minimum welfare standards for all greyhound racing tracks, to how companies should manage risks when using lasers.

The review, led by Lib Dem business minister Vince Cable, is part of Prime Minister David Cameron's aim to make Britain one of the most attractive places to do business and could result in changes to green regulation and financial services rules.

"The deluge of new regulations has been choking off enterprise for too long," Cable said on Wednesday. "We must move away from the view that the only way to solve problems is to regulate."

The coalition government, formed last month after the May 6 election proved inconclusive, estimated the cost to business of implementing all of the mooted regulations would amount to more than 19 billion pounds a year from 2011.

In March, Labour had published estimates of the financial benefits to business of its proposed rules as well as their costs, arguing companies would be better off in the long run.

The former government, in power for 13 years until May, said part of the rise in costs was due to several climate change-related measures necessary for Britain to meet international targets, such as including aviation in European emissions trading.

The Confederation of British Industry welcomed the coalition's move to cut red tape but said it was "only the first step in a process". ($1=.6831 Pound)

Reuters

Last Mod: 02 Haziran 2010, 21:01
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