Rethink on controversial red tape law

Opposition parties have welcomed confirmation that the government is to rethink proposals which aim to make it easier to scrap bureaucratic laws.

The Legislative and Regulatory Reform Bill has attracted wide-ranging criticism because of the powers it would have given ministers to amend or repeal existing laws with limited parliamentary oversight.

Cabinet Office minister Jim Murphy said there would now be new amendments to ensure the Bill focuses on "our better regulation objectives".

"Safeguards already in the Bill ensure that the order making power cannot be used to remove necessary protections, rights or freedoms," he said.

"In addition, I am now looking into making the power more clearly focused on delivering better regulation objectives."

But he said the government was still "determined that the power is framed in such a way that we still are able to deliver real change".

Murphy later told BBC Radio 4's World at One programme: "There have been some reasonable voices of concern raised, some have been overblown."

Ministers would "remove the constitutional nature from the table by tabling amendments that focus on, and focus the Bill, on better regulation outcomes", he said.

Shadow solicitor general Jonathan Djanogly said he was "extremely pleased that the government has finally come to its senses and agreed to put in place proper safeguards on a Bill which would otherwise have had profound implications for democracy".

"We do still need to see the detail of the amendments which the minister says he will be making," he added.

"If the amendments do introduce the protections which Mr Murphy has promised, then this is a major victory for freedom and parliamentary democracy.

"Following the government's announcement to scrap the part of the Company Law Reform Bill which had allowed for similar powers, this further climbdown is very welcome."

Liberal Democrat Commons spokesman David Heath said: "It is clear that the government are now panicking following frank warnings from the government chief whip in the Lords that this Bill cannot pass in its current form.

"The minister will have to go a lot further than his previously announced concession if he is to satisfy concerns.

"At the very least we need to see a drastic reduction in the scope of the Bill, measures to prevent ministers manipulating Law Commission proposals, and the safeguard of a genuine parliamentary veto that can be exercised by opposition parties to block fast track procedures.

"Without changes we are committed to ensuring that a Bill that so drastically alters the power of parliamentary scrutiny will not pass."

But the CBI warned against watering down the legislation to such an extent that it becomes impossible to meet the objective of repealing unnecessary red tape.

"This Bill is supposed to speed up deregulation and reduce the £100bn burden of red tape which is holding back business and society," said Matthew Fell, CBI head of corporate affairs.

"While it is parliament's job to ensure the legislation includes the proper checks and balances, it must not neuter the bill or delay this vital legislation.

"If the government's proposed safeguards achieve this, then they are welcomed by business.

"Of course, the real prize for all of us would be changing the mindset in Whitehall away from blanket bureaucracy and towards proper risk-based regulation."