Cutting red tape

Tony Blair promised to cut red tape for business by 25% yesterday (28 Nov) in his speech at the CBI conference. In his address today, Gordon Brown is expected to announce reforms desinged to deliver a "more modern, simpler and consistent" tax system. The PM said that bureaucracy cost almost £15 billion a year and they have identified annual savings of £2.2 billion. And Gordon's announcement comes as a response to growing criticism that the tax system has become uncompetitive.

These announcements are welcome but it has taken the Labour government a very long time to realise the burden they place on businesses. There have been several reports on the increasing cost of red tape to companies. The latest figure by the British Chamber of Commerce stood at extra £50 billion a year since Labour came to power. Also, it was reported only yesterday, that many of top British businesses are moving abroad to avoid the complicated tax system.

The government should have realised long time ago the negative effect its heavy intervention has on businesses.