Chancellor Plans to End Pointless Paperwork to Cut £800m Business Costs
The chancellor has announced plans to slash "form-filling and pointless paperwork" to save UK businesses up to £800m. Ministers claim these proposed changes in regulations, ahead of John Healey's first Budget on Wednesday, will reduce unnecessary bureaucracy for businesses.
The move is part of a broader effort in the Budget to offer households and businesses more support amid rising costs. In response, the Conservatives accused Labour of making the business situation worse.
"Labour have finally admitted that endless red tape is hammering businesses and killing jobs across the country," said shadow chancellor Andrew Griffith.
Healey acknowledged that British firms are "fed up with form-filling and pointless paperwork" that eats into time and money that could be better invested. He becomes the latest chancellor to pledge to cut red tape, which he believes will give businesses more "breathing space" to invest and create jobs.
The Treasury claims the changes will simplify compliance guidance and reporting rules, saving almost £800m in administrative and tariff costs. Prime Minister Andy Burnham and Healey are scheduled to meet business leaders at No 10 North on Friday.
Burnham emphasized that it's unfair "pointless bureaucracy gets in the way" of business growth. "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 stated.
The government aims to cut regulation by 25% by the end of the current Parliament. Rain Newton Smith, Chief Executive of the Confederation of British Industry (CBI), welcomed the plans, but emphasized the need for successful delivery.
Meanwhile, the shadow chancellor criticized the Unemployment Act, arguing that it has exacerbated the situation and created a youth jobs crisis. He urged Healey to adopt Conservative plans to cut welfare and taxes in his Budget.