JOHN HEALEY ANNOUNCES PLAN TO CUT BUSINESS PAPERWORK

Chancellor John Healey has announced plans that the Treasury says could save UK businesses almost £800 million in administrative and tariff costs. The proposals would simplify reporting rules and make guidance on complying with regulations easier to use. Healey said British firms were “fed up with form-filling and pointless paperwork” that consumed time and money. He announced the measures ahead of his first Budget, which he has said will address cost pressures on businesses and households. The government aims to cut regulatory administration for businesses by 25 per cent by the end of this Parliament.

The Treasury estimates that streamlined reporting requirements would save £290 million. It expects changes to overlapping reporting requirements for asset managers to save a further £105 million. The Treasury puts potential savings from simpler rules for businesses involved in buying and selling homes at £116 million. The government also plans to extend suspended import tariffs for another year, covering more than 250 products, including chemicals, plastics, automotive goods and food and beverages. According to the Treasury, that extension could save businesses up to £155 million.

Healey and Prime Minister Andy Burnham are due to meet small business leaders at No 10 North on Friday. Burnham said business owners should be able to spend their time serving customers, creating jobs and growing their firms. Confederation of British Industry chief executive Rain Newton Smith welcomed the proposals but said their delivery would be the test. Shadow chancellor Andrew Griffith said Labour had made conditions worse for businesses and called for tax and welfare cuts. The government says it will set out the remaining proposed savings in the Budget.