Member News
By Philippa Silverman - 28th July 2011
The government is to scrap or simplify more than half of all regulations that affect retailers in a bid to boost the sector, says Vince Cable.
The business secretary said that 130 out of 257 regulations covering retail firms will be scrapped and a further 30 are to be simplified.
Redundant legislation such as the wartime Trading With the Enemy Act, and rules around the safety of pencils and prams, will also be axed.
For example, the age-limit for buying Christmas crackers will be reduced from 16 to the European minimum of 12.
The plans are part of the government’s Red Tape Challenge, which calls on businesses and members of the public to suggest which rules could be dispensed with.
The initiative was intended to begin scrutiny of all of the 21,000 regulations across UK industry.
"There is a very serious confidence problem on the high street. Making the business environment more friendly will hopefully make a difference," said Cable.
The government has decided not to change legislation covering Sunday trading and to keep in place other rules covering areas such as hallmarking of goods.
The business secretary added that the Red Tape Challenge would be extended to 25 more themes and sectors, including employment law, by next summer.
Business and enterprise minister Mark Prisk said: "We’ve listened to what people have said about the confusing and overlapping rules with the aim to get rid of the ones we don’t need and making the ones we do simpler to understand and put into practice.
"At the same time though we are preserving good regulation, such as the hallmarking regime, for which there was strong support."
In a survey of its members, the Forum of Private Business (FPB) found that small businesses spend nearly £17bn a year to comply with regulations, an average of £14,200 for each firm.
Internal costs came to £11bn with £5.8bn being paid for external contractors.
FPB head of campaigns Jane Bennett said: "Despite several government initiatives – some more effective than others - it is clear that we are heading in the wrong direction as far as reducing regulation for small business owners is concerned.
"We simply want these measures to work properly and for the voices of the UK’s business owners to be clearly heard."
Dods Parliamentary Communications Ltd
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