Business Minister, Michael Fallon, announced last week that, from January 2013, every new regulation imposing new financial burdens on employers must be offset by reductions in red tape to save double those costs. The new ‘one-in, two-out’ rule will be imposed across all Whitehall departments and will apply to all domestic regulation affecting businesses and voluntary organisations. Like the current ‘one-in, one-out’ rule, ‘one-in, two-out’ will not apply to EU legislation unless it has been implemented into UK law in a way that goes beyond minimum EU requirements ‘putting UK businesses at a disadvantage’.
Kate Fretten, Employment Partner, says “The ‘one-in, one-out’ rule requires the costs of every new regulation to be matched by savings of an equivalent amount.” ‘One-in, two-out’ will also operate in this way – but the removal or modification must be of twice the equivalent cost. The Government states that the ‘one-in, one-out’ policy has already reduced net costs on business by almost £1bn since January 2011. ‘One-in, two-out’, will be a new regime – Government departments’ performance under ‘one-in, one-out’ will not count against the new target. However, overall performance incorporating both rules will be published at the end of this Parliament, enabling a full assessment of the Government’s record in reducing costs to business to be made. Michael Fallon stated that the new rule ‘will require policymakers to make tough choices, and to think hard about how to get government off the backs of hard-working and hard-pressed businesses’.
For a free initial meeting please call 01202 499255 and Kate or Paul will be happy to discuss any questions you may have.
Comments