Government confirms one-in, one out system for red tape

The government has confirmed it plans to introduce a one-in, one-out system for regulations that impose costs on businesses.

The business secretary, Vince Cable, has announced a package of measures as part of the change.

From 1 September when Ministers seek to introduce new regulations which impose costs on business or the third sector, they will have to identify current regulations with an equivalent value that can be removed.

The new rule has been designed to apply initially to domestic legislation affecting businesses and the third sector, with Ministers intending to expand the system in due course. To reinforce the new approach to how Whitehall will introduce new laws and regulations, and to ensure that the costs of red tape are being properly addressed across the entire British economy, the Government has also

· Agreed a set of Principles of Regulation that Government departments must apply when considering new regulations impacting upon business, social enterprises, individuals and community groups

· Asked the independent Regulatory Policy Committee to perform the role of externally scrutinising the evidence and analysis supporting new regulatory proposals, prior to policy decisions being made. It will also analyse proposals for the implementation of EU legislation. In doing so, the RPC will help drive up the accuracy and quality of Impact Assessments

· Provided the opportunity for the public and businesses to tell the Government which onerous regulations they believe should be removed or changed through the Your Freedom website, launched last month by the Deputy Prime Minster

The government says ministers will also be taking a rigorous approach to tackling EU regulations and gold plating. The government has said it will engage earlier in the Brussels policy process; take strong cross Government negotiating lines; and work to end so-called 'gold-plating' of EU regulations so that when European rules are transposed into UK law it is done without putting British business at a competitive disadvantage to other European-based companies.