Whitehall fails on red tape pledge

Ministers are missing their own targets for analysing the impact of regulatory changes on business, new research reveals.

In an analysis of the government's Regulatory Impact Assessments (RIAs) - which aim to quantify the costs and benefits to firms of proposed legislation - research commissioned by the British Chambers of Commerce (BCC) found major Whitehall departments are breaching their own guidelines.

The Department for Constitutional Affairs was the worst offender in measuring costs by failing to do so in 50% of cases. This was closely followed by the Department for the Environment, Food and Rural Affairs with 47% and HM Revenue and Customs which fell short in 40% of cases.

In a result which is likely to embarrass Gordon Brown, the Treasury - the main driver of the government's red tape slashing initiatives - came out worst in quantifying the benefits to business of regulation updates.

The chancellor's department failed in 75% of the RIAs it passed, BCC said. Next in the league were the Office of the Deputy Prime Minister and the Department for Trade and Industry.

BCC president Bill Midgley said: "If British business is going to meet the challenge from rising economic powers such as India and China, we need to cut the regulatory burden and stop even more regulations accumulating".

"The research shows that the very system introduced to ensure unnecessary regulations were not imposed on business is not working, as government departments appear to be going through the motions without any real examination of alternatives. This makes a mockery of the system".

"We need the chancellor to take action and spearhead a real deregulatory agenda across Whitehall which delivers real and lasting change so that employers notice a real improvement which helps in the day to day running of their businesses".