Parties agree on regulatory reduction
15 May 2014
Shadow business secretary Chuka Umunna has vowed to reduce unnecessary regulatory measures, while Prime Minister David Cameron pledges to drop more than 3,000 rules, in order to help small business growth.
‘Blue tape’ is the term used when referring to rules that govern business-to-business requirements, which many claim lead to delays in essential services and smaller companies being put onto more expensive contracts with providers.
Alexander Ehmann, Deputy Director of Policy and Public Affairs at the Institute of Directors (IOD), said: ‘All parties are now agreed that the debate around regulation has to move from systems to target-setting and independent assessment against those objectives’.
Labour recently announced plans to establish a Small Business Administration (SBA), to remove barriers and boost growth for startups. Mr Unmunna claimed this will increase competition in markets such as banking and energy.
John Allan, national chairman of the Federation of Small Businesses, said, ‘We look forward to hearing more about the Labour plans for an SBA and how this could tackle these issues and help the smallest firms grow and invest’.