Red tape slashed for business

16 March 2005

Encouraging enterprise is essential if Britain is to compete in a global environment, said Chancellor Gordon Brown in his Budget speech.

Mr Brown said:

"Today the enterprise challenge is to enhance the flexibility needed for a successful economy and tackle the regulatory concerns all industrial economies face while securing the standards required in a successful society."

Red tape will be cut, providing greater flexibility for businesses and removing barriers to enterprise.

Regulatory bodies will be simplified and reduced in number. A single body will take over responsibility for consumer and trading standards, and five existing agencies will be merged into the Health and Safety Executive.

Companies who meet the rules will also be subject to fewer inspections - around one million less every year. And businesses operating at a national level should no longer be subject to hundreds of different local inspections.

Small businesses will benefit from simplified VAT and corporation tax rules. They will have a single tax account with the Inland Revenue and Customs, providing information only once and paying one flat rate.

The Chancellor also highlighted the need to expand British innovation and research.

Research companies will benefit from tax credits, and technology companies will be given a guaranteed share in public sector research contracts.

A new Design Centre in Newcastle will help manufacturers develop pioneering designs.

And Britain's flourishing creative industries will get a boost in the form of tax reliefs for film makers, and an extra £12 million for the Arts Council and other arts bodies.

Mr Brown said:

"Our aim must be that Britain becomes the world's leading location for research-based, science-based and knowledge-based industries."

• Read the Chancellor's speech (opens in new window)

Our other Budget 2005 stories

• Chancellor to choose the 'prudent course' for Britain
• Education 'key to economic success', says Chancellor
• Economy 'continuing to grow strongly'

Extra information

'Budget' derives from bougette, the French for a 'little bag' which came to mean a small stock or store in the 18th century.

The longest-serving Chancellor of the 20th century was Lloyd George - he served seven years and one month between April 1908 and May 1915. Gordon Brown has so far delivered nine Budgets.

The longest Budget speech is believed to have been made by William Gladstone in 1853, lasting four hours and forty five minutes.

Useful websites

• HM Treasury 2005 Budget (opens in new window)