One-in One-out rules to stop red tape strangling business announced

Cable’s plans include introducing a set of regulation principles that government departments must apply when considering new legislation. The aim is to help transform the relationship between people and government by changing how regulations are drawn up, introduced and implemented.

From 1 September government will adopt a ‘One-in, One-out’ system, meaning that ministers seeking to introduce new regulations that will cost businesses, will have to identify current regulations with an equivalent value that can be removed.

Commenting on the plans, Cable said: “Together these measures represent a fundamental shift in how Whitehall has traditionally used regulation as a way to command and control.

“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.”

The measures come after the launch of the Your Freedom website, through which business owners can tell the government which burdensome regulations they believe should be removed or changed.

The government has also announced plans to take a more rigorous approach to tackling EU regulations by engaging earlier in the Brussels policy process, in an attempt to avoid putting British business at a disadvantage to other European-based companies.