Britain’s new Business Secretary has vowed to help small businesses by cutting £10bn of red tape over the coming five years.
The move is designed to boost British business at home and abroad.
Sajid Javid, formerly the Culture Secretary and a banker with Deutsche Bank, is to introduce an Enterprise Bill which will be part of the Queen’s Speech.
At the same time, observers are expecting news from the European Commission on its plans to reduce red tape throughout the EU for small and medium businesses.
Eighteen months ago, a panel of leading businessmen considered that the EU should cut or amend 30 red tape spots as these would ease regulation on businesses. The coalition Government then used this report to lobby for such reforms.
That previous Government committed itself to reducing red tape, but only within central government departments and without setting any targets. The new promises are expected to set specific goals.
It is anticipated that a conciliation service will also be set up to help in payment disputes between small and large companies. Continued reports indicate that large firms fail to pay small suppliers in a timely way.
John Longworth, director general of the British Chambers of Commerce, said "Businesses have been let down by successive governments promising to make inroads, so we will be watching carefully to make sure these proposals are delivered."
Mr Javid credits his own work ethic to his parents who moved to Bristol from Pakistan in 1964
"My dad started off working in a cotton mill. Then he drove buses. And, at weekends, he ran a clothing stall at the local market. And my mum was back at home – looking after us and making clothes for the stall. Later, we had the [ladieswear] shop."
