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Government 'sneaking regulation through back door'

The government is failing to meet its commitment to introduce new regulation on only two 'common commencement dates', the Federation of Small Businesses (FSB) has warned.

As part of a drive to help businesses comply with regulation, key government departments had committed to introduce new legislation on 6 April and 1 October only. However, the FSB says that ministers have 'ignored' their own rules by also introducing legislation outside of those dates.

Among the examples the FSB cites are the London Low Emission Zone, signed into law on 4 February, and the Immigration, Asylum and Nationality Act – introduced on 29 February – which implemented new laws on employing foreign workers.

"By ignoring its own common commencement dates the government is effectively sneaking regulation in through the backdoor in the hope that no one will notice," said FSB national chairman John Wright.

Yesterday, the British Chambers of Commerce (BCC) gave a cautious welcome to a separate code of practice aimed at red tape. The government says that its Regulators' Compliance Code will mean fewer inspections and less regulation for most compliant businesses, but "more rigorous inspection" for businesses at risk of not complying with regulations.

"The introduction of the Compliance Code is a step in the right direction," said BCC head of policy Chris Hannant.

"Since 1998 the cost of regulation to British businesses has risen to £66 billion. By recognising the need for a light-touch approach, the government now appears to recognise the need to halt the flow of more unnecessary red tape."

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