Cut in red tape fails to win approval

Business Secretary Vince Cable said he wanted to tackle unnecessary Government interference and encourage a "fundamental shift" in how Whitehall uses regulations.

The Regulatory Policy Committee will study any new proposals before decisions are made, he said.

The Institute of Directors criticised the proposals and asked where was the action on the 101 employment and health and safety suggestions it submitted to the Government over the past few months.

But Dr Adam Marshall, director of policy at the British Chambers of Commerce, said: "We commend the coalition for its efforts to reduce the regulatory burden that all too often holds back business growth."

Stephen Robertson, British Retail Consortium director general welcomed the announcement but added: "This announcement is a positive indication of good intent but we'll reserve final judgement until we see whether the Government delivers in practice."