New plan to cut business red tape

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"Road testing" for new business regulations and direct EU contact are among recommendations to cut red tape in a government commissioned report.

The report also called for closer working between government and business when regulation is created or changed.

The finance secretary said it signalled a new era of partnership working.

CBI Scotland welcomed the report but called for the reforms to apply not only to government-inspired regulation but also committee and private bills.

In its report, the Regulatory Review Group recommended every government department and regulator introducing legislation should use a group of businesses for road testing their plans.

Red tape is ... one of the most significant avoidable constraints on competitiveness and business growth Iain McMillanCBI Scotland Finance Secretary John Swinney said this was a key recommendation and one that the government was determined to take forward.

The group also said Scottish ministers should be able to make their own case to the European Union on regulations that had an impact on Scottish business, rather than relying on Westminster.

In addition, the group said regulations formed by Westminster should also be tested before they are introduced to assess how they impact on different parts of the UK.

Mr Swinney said he "was particularly pleased" with this recommendation.

He added: "I am also convinced of the need for the Scottish Government to make its own case on regulations affecting Scotland directly to the EU rather than relying on Westminster departments.

"That is something we will take forward at both EU and UK level."

Working together

CBI Scotland director Iain McMillan praised the group for its work developing the proposals.

He said: "Red tape is a very real problem for firms and one of the most significant avoidable constraints on competitiveness and business growth.

"The finance secretary's announcement is most welcome, reflects much of what CBI Scotland wanted to hear and is a testament to government and business working together.

"It is crucial that these reforms apply not only to government-inspired regulation but also to legislation emanating from parliamentary committees and backbench members bills."

The Regulatory Review Group was set up in 2004. Last year its remit was expanded by the government to include advising ministers on better regulation.