14 March 2008
A new system of regulatory budgets for Whitehall departments, setting out the cost of regulations that could be introduced in a given period, would be 'a world first', the government has claimed.
The proposal is one of a series of measures in a ten-year enterprise strategy, published alongside the Budget by the Treasury and the Department for Business, Enterprise and Regulatory Reform.
Enterprise: unlocking the UK's talent also proposes using government procurement to drive innovation, with a particular focus on small and medium enterprises.
An independent review, to be led by Anne Glover of the venture capital firm Amadeus, will examine the barriers to SMEs winning more government contracts and look at the feasibility of setting a target for SMEs to win 30% of all public sector business in the next five years.
The strategy includes extending lending and funding schemes to boost UK business, with a 20% increase to the Small Firms Loan Guarantee Scheme, taking it to £60m next year. Another £30m has been allocated to Enterprise Capital Funds, while £12.5m will go into an investment fund for businesses led by women.
Richard Lambert, director-general of the CBI business lobby, said: 'The promised radical measures to cap Whitehall departments' ability to impose new regulations is greatly welcome. However, this… pledge needs to be followed through in practice.'
But the Trades Union Congress criticised the strategy. General secretary Brendan Barber said too much of it was 'based on business prejudice about regulation, not solid analysis'.
PFmar2008
