§ Mr. Quentin DaviesTo ask the Secretary of State for Trade and Industry how many regulations were abolished as a result of an initiative taken by his Department's deregulation unit over the latest 12-month period for which figures are available; and if he will make a statement.
§ Mr. RedwoodThe deregulation unit is responsible for monitoring and co-ordinating progress under the 35W deregulation initiative. The initiative has three aims: to abolish unnecessary regulations and licences; to improve the clarity and effectiveness of all rules and regulations where these remain necessary; and to ensure that the compliance costs to business are assessed and taken into account in developing new regulations. The initiative covers regulation by central and local government in the United Kingdom as well as regulations originating in the European Commission. On 13 May, I announced publication of "Cutting Red Tape for Business", the latest record of achievements under the initiative. A copy is in the Library. The benefit of these achievements is cumulative and, taken together, they have saved business many millions of pounds in time and administrative effort.
For example, self-employed people whose annual turnover is below a certain threshold now need only send the Inland Revenue a simple three-line statement of profits instead of full accounts. The threshold has recently been raised to £15,000. Again, the annual turnover threshold for VAT registration has been increased by 38 per cent. from £25,400 to £35,000, keeping small businesses out of the VAT net for longer. The unit would welcome suggestions of new areas for action.