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Cable launches 'one-out, one-in' policy for business regulation

Business Secretary Vince Cable has revealed plans to introduce a one-in, one-out system for any new regulations that impose costs on businesses.

The rule will be introduced on 1 September and will force ministers who want to propose new regulations to identify an existing piece of regulation that can be removed.

In addition, a panel of business experts will scrutinise all new legislation before it is introduced. The new rule will apply to all UK legislation; although it is estimated that at a third of new business regulations last year were a result of changes in EU law.

Cable’s announcement has been welcomed by business organisations such as the Forum of Private Businesses and the British Chambers of Commerce.

It is also likely to please the packaging industry, which called on government to do everything in its power to support the UK manufacturing base in Packaging News' Election Manifesto for the industry, published prior to the general election in May.

Whitehall 'culture change'
However, warnings were sounded that the change must be backed by a cultural shift in Whitehall.

The FPB’s head of campaigns Jane Bennett said: "The concept of introducing regulations only as they are needed is absolutely necessary given the existing burden on small businesses, but it will require a change in behaviour for many government departments."

The moves are part of a package of measures described by Business Secretary Vince Cable as a "fundamental shift" in Whitehall's approach to regulation.

"By ensuring regulation becomes a last resort, we will create an environment that frees business from the burden of red tape, helping to create the right conditions for recovery and growth in the UK economy," he said.