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NECC Backs Plans to Cut Through Red Tape

 

A regional business champion has thrown its weight behind proposals to rip through the red tape currently stifling economic growth.

North East Shadow MPC Delivers Majority Verdict to Hold Interest Rates for AugustA regional business champion has thrown its weight behind proposals to rip through the red tape currently stifling economic growth.
The Government is running consultation on the Draft Deregulation Bill, which proposes a mechanism to remove (or "disapply") redundant legislation; impose an economic growth duty for regulators; reform employment tribunals; and improve the delivery of apprenticeships.

In its response to the Bill, the North East Chamber of Commerce has backed the plans to remove unnecessary bureaucracy that costs British businesses millions.

NECC Policy Adviser, Rachel Travis, said: "Unnecessary and complex regulation places a considerable burden on business, draining time and resources and hindering economic performance.

"North East firms consistently cite red tape as a barrier to business growth and NECC is committed to reducing the burden of regulation.

"In principle, NECC supports the introduction of a mechanism to allow Parliament to remove outdated and irrelevant legislation more quickly. However, greater clarity on how it will operate is required. Given the modest response to the Red Tape Challenge, the mechanism must be easy to understand and apply to ensure businesses see real benefit."

NECC also welcomes proposals for the introduction of a duty to require non-economic regulators to consider the impact of regulation upon economic growth.

The Bill proposes to exempt from health and safety law those self-employed workers whose activities are low risk.

Rachel added: "Many small firms and self-employed workers do not have in-house HR departments, leading to escalating compliance costs. An exemption for self-employed workers will free up resources and encourage entrepreneurship.

"Likewise, tribunal reform is a welcome step. Over the past decade, employment tribunals have more than doubled, placing considerable strain on businesses. Even when claims are dismissed, the impact upon staff morale is significant, while legal costs can reach thousands of pounds.

"The power of tribunals to make wider recommendations, such as suggesting companies bring in external consultants to implement training, extends tribunal jurisdiction to an unwarranted degree. Removing this power will encourage business confidence in the tribunal system."