John Healey has set out plans to reduce ‘useless form filling and paperwork’
The Chancellor has unveiled proposals to cut “useless form-filling and paperwork” which aims to reduce the £800 million worth of red tape businesses face.
The measures, designed to give businesses “breathing space”, come ahead of John Healey’s first Budget next week, in which he promises to ease cost pressures on businesses and households.
He and Prime Minister Andy Burnham will meet small business leaders at No 10 North on Friday.
The announcement is part of a wider drive to reduce the regulatory admin burden on businesses by 25% before the end of this Parliament.
Streamlined reporting requirements are expected to save £290 million; reducing “duplicate reporting burdens” for asset managers by £105 million; and cutting red tape to buy and sell £116 million of homes for businesses in the transaction chain.
Extending tariff suspensions to more than 250 products could save up to £155 million, according to the Treasury.
The suspension of import tariffs in sectors including chemicals, plastics, automotive and food and beverages will expire at the end of December but has been extended for another year.
The remaining cost-saving measures will be outlined in the Budget.
Mr Burnham said: “When you run a business, you want to spend your time serving customers, creating jobs and growing your company, not filling out unnecessary forms.
“It is not right that useless bureaucracy is interfering with people who are working hard to build something important for the high street.
“So we are asking the government to give businesses breathing room to grow.
“Because when businesses succeed, they create good jobs, strengthen communities and grow in every part of the country.”
Mr Healey said: “UK companies are fed up with paperwork filling out forms and there is no point eating up valuable time and money if they just want to run a business.
“That’s why we eliminate unnecessary bureaucracy and give businesses the breathing space they need to invest, innovate and create great projects.”
Government borrowing rose more than forecast to £24.5 billion last month, easing the constraints facing public finances ahead of the Chancellor’s Budget.
Mr Healey is expected to raise taxes on banks as rising borrowing costs erode fiscal headroom.
He has rejected calls to increase capital gains tax in the Budget, fearing it could hamper economic growth.
Shadow chancellor Andrew Griffith said: “Labour is finally acknowledging that endless red tape is killing businesses and killing jobs across the country.
“But despite warnings from business and the Conservatives, Labor pushed ahead with a 330-page Unemployment bill inspired by trade unionist Angela Rayner, which only made things worse and created a youth workforce emergency.
“John Healey must get a grip on the Budget next week. He must return our Conservative plans to cut welfare and cut taxes so that we can get Britain working again.”
Kate Shoesmith, Director of Policy at the UK Chamber of Commerce, said: “Businesses have for too long fought against rising paper and costs when they should be focusing on customers, investment and growth.
“The BCC Cost Stack Policy lays bare what the company is up against. A representative SME with 50 employees is now facing around £827,000 more in annual domestic privacy-led costs than in 2016, an increase of over 70%. So clearer guidance, simpler reports and fewer duplicate requests are a sensible change with real benefits.
“We are also supporting tariff deferrals on goods used by UK businesses, which will help reduce import costs and support companies competing in difficult trading conditions.
“But all eyes will now turn to next week’s budget. The government cannot cut red tape with one hand and increase the cost of new businesses with the other. The message from companies is simple: business returns by reducing costs and will generate growth.