Earlier this week, Business Minister Michael Fallon announced the latest Government step in its bid to reduce the burden on business by cutting the costs of red tape on business at double the present rate.

The new ‘One-in, Two-out’ rule will be imposed from January 2013, and it will mean that every new regulation that imposes a new financial burden on firms must be offset by reductions in red tape to hopefully save double the costs.

The new rule will be enforced across every Whitehall department and will apply to all domestic regulation affecting businesses and voluntary organisations.

It will replace the current ‘One-in, One-out’ rule, which requires the costs of every new regulation to be matched by savings of an equivalent amount.

Commenting on the new rules, Michael Fallon said:

“The Government is focused on making sure Britain competes and thrives in the global race by helping fire up our private sector and boost enterprise. ‘One-in, One-out’ has driven a profound culture change across government. Departments are starting to see legislation as a last resort, not the default option.

“But every year businessmen and women still spend too much time and money complying with Government regulations, when they should be developing and growing their businesses. We are impatient for growth and I’m determined to remove this brake on aspiration.

“That’s why we are upping the pace. Our new target will require radical thinking right across Whitehall. It will require policymakers to make tough choices and to think hard about how to get Government off the backs of hard-working and hard-pressed businesses”.