Healey says business rule changes could save firms almost £800m

Chancellor John Healey says proposed changes to business rules could save UK firms almost £800m in administrative and tariff costs, as the government seeks to reduce red tape ahead of its first Budget on Wednesday.

The Treasury says the plans would make compliance guidance easier to follow and simplify the reporting rules businesses must meet. Ministers have not detailed the individual changes or explained how the projected savings break down.

The government says it aims to cut regulation by 25% by the end of the current Parliament. Healey said businesses were fed up with paperwork taking time and money away from their work, and argued that easing the burden would give them more room to invest and create jobs.

The Confederation of British Industry’s chief executive, Rain Newton-Smith, welcomed the plans but said their success would depend on delivering reform.

Conservative shadow chancellor Andrew Griffith said Labour had made business conditions worse, citing the Employment Rights Act. He called on Healey to use the Budget to cut welfare spending and taxes.