The Government’s ‘one-in, one-out’ rule which was introduced under its Better Regulation regime is not working quickly enough so is being replaced with ‘one-in, two-out’.
From January 2013, every regulation the Government introduces that imposes a new financial burden on firms must be offset by reductions in red tape that will save double those costs.
This will apply to all domestic regulation affecting businesses and voluntary organisations but not to EU legislation (unless it has been transposed in a way that goes above minimum EU requirements). Other areas that are exempt include tax administration and civil emergencies regulation.
Under ‘one-in, one-out’ the forecasted cost impact of every new regulation had to be matched by savings elsewhere of an equivalent amount. According to the Department for Business, Innovation and Skills this has already reduced net costs on business by around £850 million since January 2011.
‘One-in, two-out’ will push this even further and ensure that Government departments use regulation only as a last resort.
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