UK to reduce unnecessary red tape for British businesses

Ministers have revealed bold plans to reform and modernise the way regulations are made and implemented in the UK.

Following Brexit, the UK has the freedom to make and implement regulations that place British businesses and consumers first – freeing firms from excessive formality and reducing costs, while boosting competition, innovation and economic growth.

 

Unnecessary bureaucracy

To reduce unnecessary red tape following the UK’s exit from the EU, the consultation looks at implementing regulations such as the ‘One-In-Two-Out’ method. Literally, this means that if the government introduces new regulation, alternative ones would need to be removed.

To enable innovative companies to trial ground-breaking ideas safely, the government could also look to make more use and impact of ‘sandboxes’, where certain regulations are lifted to test new products in a real-world setting, under the regulator’s supervision – this was another reform recommended by the independent Taskforce on Innovation, Growth and Regulatory Reform (TIGRR).

The TIGRR aims to move away from the EU’s excessive use of the ‘precautionary principle’ and adopt a ‘proportionality principle’ in our regulatory framework. If adopted, this would mean that regulation focuses more on outcomes, rather than processes, and proportionate to impacts on businesses and people.

 

Introducing a ‘nimble approach’

Business Secretary, Kwasi Kwarteng, said: “Taking back control means setting regulation in a way that works best for British businesses, workers and our wider economy.

“By taking a nimble approach, suited to our national interest, we can maintain our high standards and cement the UK’s status as an attractive place to start and grow business.”

The consultation sets out five principles, underpinning the Government’s approach, to ensure it benefits the British people:

  • A sovereign approach: following Brexit, the UK will take a tailored approach to setting rules in a way that boosts growth and benefits the British people.
  • Leading from the front: working nimbly to support the development of new technologies.
  • Proportionality: where possible, the Government will use non-regulatory options, allowing markets to move dynamically, while acting decisively to place strong rules where needed.
  • Recognising what works: thorough analysis of regulations to ensure they work practically.

Finally, high standards: the UK will pursue robust regulatory diplomacy and help to solve global problems.

Latest Blog
02
Dec

Tax Diary December 2021/January 2022

1 December 2021 – Due date for corporation tax payable for the year ended 28 Fe...

Read More
02
Dec

Budget bad news 27 October 2021

Readers should take note of the following changes: Income Tax Allowances frozen: The ...

Read More
02
Dec

Budget bonuses 27 October 2021

There was little good cheer in the Chancellor’s announcements to parliament on ...

Read More
02
Dec

Business gifts and tax

Business gifts are not allowed as a tax deduction against profits. The legislation tr...

Read More

CONTACT SIMON COOPER