Labour pledges £6bn cut in business regulation costs

Labour launched its manifesto today with a pledge to slash more than £6bn off the cost of business regulation by 2015.

The party document promised to achieve the saving by continuing to "simplify regulation and avoid unnecessary red tape", and added if used correctly regulation can help drive innovation, as well as protect workers and consumers.

Labour also promised to keep business taxation "competitive", at the same time increase capital allowances to encourage investment.

Wealth creation and cuts in red tape are ‘at the heart' of Labour policy according to the party document, which sets out Labour's stall ahead of the 6 May General Election Gordon Brown announced last week.

In the chapter 'Building the high-growth economy of the future', the manifesto states: "At the heart of our approach to building a strong and fair Britain is a commitment to support enterprise.

"We will back those who want to get on, work their way up, and generate wealth."

The party promises small businesses help with their cash flow through the Government's 'Time to Pay' scheme of tax and National Insurance Contributions deferral, and by a one-year holiday on business rates for small businesses, measures announced in last month's Budget.

Similarly it reiterated its pledge to create a new Small Business Credit Adjudicator with statutory powers ensuring SMEs are not turned down unfairly when applying to banks for finance.

Labour said it was doubling the Entrepreneurs Relief lifetime limit to £2m in recognition of the "special contribution" of entrepreneurs make to the economy.

Future plans included creating a new generation of entrepreneurs by ensuring those studying for vocational skills are offered opportunities to learn how to start and run a business.

This article originally appeared in our sister website ifaonline.co.uk.

Further reading:

Hundred Group says no to annual chairmen elections

Tories and Labour trading election blows on tax