The way small businesses are regulated must be made less complex, says Nick Clegg, who outlined his simplification strategy to small-firm leaders yesterday.
The Deputy Prime Minister proposes relaxing rules on company inspections, removing both the right for on-the-spot inspections and capping organised inspections to twice a year.
He also believes that a culture change is required in central government to "liberate" small businesses from excessive red tape.
Conservative members of the coalition government have previously labelled the Liberal Democrats "red-tape-wielding zealots”, but it was the Lib Dem Business Secretary, Vince Cable, who launched a review of 200 pending regulations last year. Saving £19m, the move was designed to cut red tape inherited from the Labour government and free SMEs from regulations that are stifling growth.
Clegg aims to make "sure that [regulators] intervene when necessary, offer advice and support, but otherwise let you get on with it. And they will have to make sure they aren't breathing down your necks.
The end result will be a system designed for busy, working people rather than a job creation scheme for accountants and lawyers
Nick Clegg
The government claims that reforms have already saved British businesses £3bn, with all government departments required to publish a list of future regulatory changes by the end of 2011.
This move will be welcome news for Mike Cherry, policy chairman of the Federation of Small Businesses, who has previously commented:
“Regulation has long been stifling business growth, so these plans to put an end to the excessive legislation that choke small businesses is welcome news. It is a real victory that our calls to simplify the regulation system have finally been heard."
