Highlights
- The Treasury expects businesses to save around £800 million through cuts to unnecessary paperwork and regulation.
- Streamlined reporting requirements are expected to save £290 million, while changes affecting asset managers and property transactions could save a further £221 million.
- Import tariff suspensions covering more than 250 products will be extended for another year, with savings of up to £155 million.
UK businesses are set to receive around £800 million in savings from a government plan to cut red tape, with Chancellor John Healey promising to reduce unnecessary paperwork and give firms more room to invest and grow.
The measures, announced ahead of Healey’s first Budget next week, form part of the government’s target to reduce the regulatory administrative burden on businesses by 25 per cent by the end of the parliament.
The Treasury expects streamlined reporting requirements to save businesses £290 million. Easing what it describes as duplicative reporting burdens for asset managers is expected to save another £105 million, while reducing red tape around buying and selling homes could deliver £116 million for businesses involved in property transactions.
The government is also extending import tariff suspensions across more than 250 products for another year. The suspensions, which cover sectors including chemicals, plastics, automotive and food and beverages, had been due to expire at the end of December. The Treasury estimates the extension will save businesses up to £155 million.
Further measures to reduce costs will be set out in the Budget.
Healey and Prime Minister Andy Burnham are due to meet small business leaders at No 10 North in Manchester on Friday.
Burnham said businesses should be able to focus on serving customers, creating jobs and growing their firms rather than completing unnecessary forms.
“If you run a business, you want to spend your time serving your customers, creating jobs and growing your firm, not filling in unnecessary forms,” he said.
He added that the government was seeking to remove barriers to growth and give businesses more breathing space.
Healey said firms were frustrated by paperwork that consumed time and money.
“That is why we are cutting unnecessary bureaucracy and giving businesses the breathing space they need to invest, innovate and create good jobs,” he said.
The announcement comes against a challenging backdrop for public finances. Government borrowing rose more than expected to £24.5 billion last month, highlighting the pressure on the Chancellor ahead of the Budget.
Healey is expected to increase taxes on banks as higher borrowing costs weigh on fiscal headroom. He has ruled out raising capital gains tax, amid concerns that such a move could discourage investment and hamper economic growth.
