Regulation and Red Tape

In June 2009, Birmingham Chamber’s members described burdensome regulation and red tape as the most significant barrier to the productivity and competitiveness of their firm.

Despite three Acts of Parliament designed to reduce the regulatory impact namely: the Regulatory Reform Act (2001); the Legislative and Regulatory Reform Act (2006) and the Regulatory Enforcement and Sanctions Act (2008), it is clear that the burden on business is continuing to grow. The British Chambers of Commerce’s estimate that the cost of regulation to West Midlands businesses since 1998 has risen to £6.2 billion from £5.4 billion last year in its influential 2009 Burdens Barometer. The most burdensome regulation in the Barometer is the Working Time Regulations (1999) though Birmingham Chamber members point to the increasing costs associated with maternity leave, paternity leave and parental leave.

Birmingham Chamber recognises the need for proportionate regulation, but it must be well targeted, risk-based and business friendly. Our key lobbying priorities are:

1. A moratorium on further business regulation and for government to start to significantly reduce the burden on businesses in order to lessen the impact of the recession on firms. 

2. The implementation of Regulatory Budgets to force Government departments to take account of the burden of their legislation on businesses.

3. A review of the Flexible Working (Procedural Requirements) Regulations 2002, which have cost businesses £1.884 billion since 2002.

4. A review of the Data Protection Act. According to Government figures it has cost businesses more than £8 billion and given that it is over a decade old it would be an ideal candidate for post-implementation review.

Katie Teasdale is your Policy Manager for Regulation and Red Tape. If you have an issue on this subject you would like to discuss, call 0121 607 2295 or email k.teasdale@birminghamchamber.org.uk.