Chancellor spares business new reporting requirements

Gordon Brown has torn up Government plans to introduce new financial, environmental and social policy reporting requirements due to be imposed on business from next year.

The Chancellor will announce the move to the CBI today, along with a series of measures to cut red tape. He will pledge that the government will no longer "goldplate" European directives by adding additional measures when introducing them to domestic law.

Examples of the practice include the Brussels-inspired Operating and Financial Review, which would have imposed a new layer of reporting standards from April next year, but which will not now be imposed. The move will save 1,300 of the UK's largest companies up to £33m a year, according to the Treasury.

Mr Brown will also announce that his new "risk-based" approach to regulation will see Revenue and Customs publish a plan to simplify its approach that should save business £300m a year. He will say that Neil Davidson QC will audit existing legislation to identify areas for deregulation.

The Chancellor will tell business leaders: "The risk-based approach moves us a million miles away from the old assumption: that business, unregulated, will invariably act irresponsibly."