Red Tape Purge Could Save Businesses Billions, Say Tory Heavyweights

Proposed Changes to Slash Regulatory Costs

Ahead of the Budget, Tory heavyweights are pushing for changes that could save businesses billions by cutting red tape. Former anti-corruption champion John Penrose and other influential figures are calling for a cap on regulatory costs to help businesses thrive.

Impact on Economic Growth

John Penrose emphasized the detrimental effect of red tape on economic growth, likening it to a tax on businesses. He urged the Chancellor to include red tape costs in fiscal rules to hold governments and regulators accountable for their spending.

Call for Action

Former Tory leader Sir Iain Duncan Smith highlighted the importance of reducing red tape, stating that it is a significant burden on industries, start-ups, and small businesses. He estimated that cutting regulations could result in saving billions of pounds annually.

Taskforce Recommendations

Sir Iain, who led the Taskforce on Innovation, Growth, and Regulatory Reform in 2021, proposed various measures to streamline regulations and support emerging industries. However, he criticized Prime Minister Boris Johnson for not taking sufficient action to reduce red tape.

Chancellor's Focus in Budget

Former Cabinet Minister Damian Green stressed the need to prioritize cutting bureaucratic costs to foster growth in British businesses. While capping regulatory burdens may not be on the table for the upcoming Budget, there are discussions about establishing a parliamentary group to tackle red tape issues.