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Business secretary, Vince Cable, has unveiled plans to set up a Cabinet Office ‘star chamber' which will oversee moves to slash regulation and reduce red tape. The newly-titled ‘Reducing regulation committee' will be chaired by Dr Cable and charged with developing a new approach to laws and regulations that will manage down costs. He has also detailed moves to establish a ‘challenge group' which can come up with innovative approaches to achieving social and environmental goals but avoid the need for complicated new regulations. His announcement will be followed closely by council leaders, who have already said that ‘quick savings' of £4.5bn could be made, and promised to work closely with the Government to cut bureaucracy and reduce unnecessary inspection and regulation. Dame Margaret Eaton, chairman of the Local Government Association, stressed: ‘There are enormous opportunities to save billions of pounds more, if we grasp the nettle and cut out the middlemen who tie up huge sums in needless red tape. ‘We are determined to work with the Government to deliver long-overdue reform.' The LGA is pressing for more streamlined departmental and inspection structures alongside ‘stringent local self-regulation', and promised: ‘We commit to undertaking self-regulation in the event that a council fails to perform.' Dr Cable said his initiative would adopt a ‘one-in, one-out' management approach, designed to change the culture of government and make sure that new regulations were only brought in when cuts could be made to existing regulation. His challenge group team will work with the American behavioural economist, Richard Thale, and other experts to develop alternative proposals to regulations drafted by the other government departments. ‘We must move away from the view that the only way to solve problems is to regulate,' said Dr Cable. ‘The Government has wide-ranging social and ecological goals, including protecting consumers and protecting the environment. This requires increased social responsibility on the part of businesses and individuals. This is a real challenge and it will not be easy. We need to reduce regulation and, at the same time, meet our social and environmental ambitions. This demands a radical change in culture away from the tick-box approach.'

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WHITEHALL

Cable unveils Cabinet 'star' to slash red tape

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