New UK business secretary Sajid Javid to cut red tape by £10 billion over next five years.
Sajid Javid, the new business secretary, will outline how the new parliament will cut red tape for businesses by at least £10 billion. It will be his first speech since replacing Vince Cable and will include details of the enterprise bill alongside plans to create two million jobs over the next five years.
One of the aims is to free up small businesses from independent regulators, but another is to create the conciliation service that was included in the Conservative manifesto. This small business conciliation service will help firms with situations where they’re unsure how to proceed, such as claiming late payments.
“As part of our long-term economic plan, we will sweep away burdensome red tape, get heavy handed regulators off firms’ backs and create a small business conciliation service to help resolve disputes,” Mr Javid said in a speech in Bristol, where he grew up.
“This will be the first time in modern history that government has successively reduced red tape costs for business over successive parliamentary terms. And business will be our partner giving us the evidence we need to roll back the state,” he added.
Research suggests that small businesses are owed more than £30 billion in late payments, however, firms are unsure how to go about reclaiming that money. Even worse, they often fear the backlash on future business from taking legal action.
The enterprise bill will help cut a path through the swathes of red tape, while extending the fight to include independent regulators for the first time. The government will also be looking to small businesses for advice for which burdens to tackle first.
“We want [small businesses] to be our partners in identifying and scrapping needless burdens at home and in Europe," said Anna Soubry, the new small business minister.
“It’s important government gets behind small businesses - enabling them to get finance, get paid on time and get rid of red tape."
Mr Javid’s speech comes not long after several leaders of the business community laid out the priorities that they hope he will be focusing on. Read more about their call for action here.
"As an immediate step, we want the government to set out a clear business plan for its first 100 days, including getting the deficit down, finding new ways to deliver public services and committing to the Airports Commission's final decision this summer," said John Cridland, director-general of the Confederation of British Industry.
In addition, Mr Cridland also believed that boosting trade, exports and investments in companies is vital to “drive growth and create jobs up and down the country”.
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