High profile campaign to slash red tape

Shadow trade secretary Tim Yeo is calling for industry experts to join a high-profile campaign to slash red tape.

The offensive already has the support of Wolverhampton and Dudley Breweries' chairman David Thompson, who will join a panel to fight unnecessary regulations that swamp operators in bureaucracy.

Mr Thompson has been recruited for his experience in dealing with the government on such issues and is the director of West Midlands Regional Development Agency.

"Wolverhampton and Dudley absorbs a substantial amount of new regulations and costs and we'll be looking to legislate only when there is a genuine need," said Mr Thompson. "The government needs to realise the consequences of too much red tape.

"We will be looking to abolish laws that have the most restrictive effect on the economy, discourage investment or put prices up."

The panel, formed by Mr Yeo, wants licensees to let it know which regulations are the most burdening - such as those that keep publicans from running their everyday business. It will look at ways of reducing red tape, which it says is holding back industry.

The government admitted last year that unnecessary red tape had been costing small businesses an extra £5bn a year since Labour came into power.

Managed giant Six Continents alone saw £20m wiped from its bottom line last year in additional regulative costs.

The latest law to hit publicans is the Employment Act 2002, which comes into effect this April. This, will mean that licensees will have to consider allowing flexible working hours for parents who have a child under six or a disabled child under 18 - a significant burden for the industry.

Kate Nicholls, who heads up the trade's Red Tape Group, said: "The more people that press the government for reform, the better. It can only help our plight."

Last November, plans by the Liberal Democrats to cut bureaucracy for small businesses were welcomed by the pub industry.

The Lib Dems put forward a Reduction of Regulation Bill in parliament with the aim of lessening "unnecessary" red tape for small businesses - but this was rejected. It is now hoped that the Conservative-backed campaign will have more of an impact.

Licensees should send their thoughts on the most unnecessary regulations to Tim Yeo, 1 Parliament Street, London SW1 or email campbell@parliament.uk.