Cutting regulations 'helps firms'

Vince CableBusiness confidence will be boosted under plans to cut red tape, increase "green" investment and reform competition and the banks, the Government has said.

The Enterprise and Regulatory Reform Bill aims to overhaul employment tribunals, remove "unnecessary" business legislation and limit inspection of firms.
The Bill also confirms the Government's intention to set up an investment bank to speed up private sector investment in the green economy.

Business Secretary Vince Cable said: "Securing economic growth through business investment and trade is absolutely essential to recovery. Government's plans to cut red tape, boost green investment, reform the competition landscape and reform the banks are vital moves that would help strengthen the business environment and boost consumer and business confidence."

TUC general secretary Brendan Barber said: "We needed a programme for growth. Instead, we have an incoherent hotchpotch that will do little or nothing to deal with our fundamental economic problems or create jobs. The main obstacle remains the Government's mistaken policies of austerity that have sent the economy back into reverse.

"Even those proposals that go in the right direction have too often been watered down, so we have a green investment bank that is not a real bank and executive pay curbs that lack teeth.

"What is worst is that ministers are wrapping up a real attack on rights at work as good for growth and employment."

John Longworth, director general of the British Chambers of Commerce said: "Business has said time and time again that the Government must choose between boosting the economy or playing short-term politics. Business people and voters understand that the economy must come first, especially given continued uncertainty across the eurozone.

"On balance, business will welcome some of the Government's proposed legislative measures, but express serious reservations about others. Positive steps such as reform to employment tribunals and red tape reductions could be undermined by complex new burdens around shared parental leave, for example."

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