THE cost of red tape imposed on business by the government has hit £66 billion, a £10 billion rise in a year, new figures show.

The British Chambers of Commerce’s burdens barometer, published annually, shows Labour is not meeting its pledge to reduce the bureaucratic burden on business. While there have been tiny reductions in minor areas, this is balanced by the rising tide of regulation in others.

“The success of the government’s drive for better regulation must be judged on the extent to which the UK’s regulatory burden has been reduced,” said the BCC’s Sally Low. “On this basis the government’s record does not stand up to scrutiny.

“Our burdens barometer now stands at almost £66 billion, compared to £10 billion in 2001 when we first compiled it. Initiatives without delivery will do nothing to help keep British businesses competitive.”

The barometer, compiled by Francis Chittenden of the Man-chester Business School and Tim Ambler of the London Business School, is the basis of official calculations for the cost of regulation, in so-called regulatory impact assessments.

The biggest burden is the working-time regulation, £1.8 billion a year or £16 billion in total since its introduction. It is followed by vehicle excise duty (reduced pollution) rules, costing £1.23 billion annually, or a cumulative £9.2 billion; amendments to the building inspection regime, £1.2 billion or £2.72 billion; and the Data Protection Bill, £667m, or £7.35 billion.

In comparison with the £10.4 billion rise in the cost of red tape over the past year, the government can point to only three modest reductions. The Fire Regulatory Reform Order, which has been battled over for years in Whitehall, will save business a modest £67m a year. The government is committed to a 25% reduction in the administrative burden of red tape.

“The cost of regulation is still rising and there is no evidence that this is going into reverse,” said Chittenden. “I hope the civil servants who achieved these small reductions are promoted. But it is too little, too late.”

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