Chancellor unveils £800 million savings for businesses by slashing ‘pointless paperwork’

Businesses are in line for around £800 million in savings on paperwork under plans announced by the Chancellor, who wants to cut back on “form-filling and pointless paperwork”.

The measures, designed to give businesses “breathing space”, have been unveiled ahead of John Healey’s first Budget next week.

Mr Healey has said that he wants the Budget to ease cost pressures on both companies and households.

The Treasury expects streamlined reporting requirements to save £290 million.

Easing “duplicative reporting burdens” for asset managers is expected to save £105 million.

A further £116 million in savings is expected for businesses in the transaction chain from cutting red tape involved in buying and selling homes.

Import tariffs that were paused across sectors including chemicals, plastics, automotive and food and beverages had been due to expire at the end of December.

Instead, the suspensions are being extended for another year, covering more than 250 products.

According to the Treasury, that extension is due to save up to £155 million.

The measures form part of efforts to cut back the regulatory admin businesses are required to do by 25 per cent by the end of this Parliament.

Any remaining cost-saving measures will be set out in the Budget.

Mr Healey and Prime Minister Andy Burnham are due to meet small business leaders at No 10 North on Friday.

Mr Burnham said: “If you run a business, you want to spend your time serving your customers, creating jobs and growing your firm, not filling in unnecessary forms.

“It’s not right that pointless bureaucracy gets in the way of people working hard to build something that matters to their high street.

“So we’re getting government off their backs and giving businesses the breathing space to grow.

“Because when businesses succeed, they create good jobs, strengthen their communities and bring growth to every part of the country.”

Mr Healey said: “British firms are fed up with form-filling and pointless paperwork that eats into valuable time and money when they simply want to get on with running their businesses.

“That is why we are cutting unnecessary bureaucracy and giving businesses the breathing space they need to invest, innovate and create good jobs.”

The plans come against a tight fiscal backdrop, with UK government borrowing rising by more than expected to £24.5 billion for last month.

That undershoot of expectations underscores the constraints in the public finances ahead of the Chancellor’s Budget.

Higher borrowing costs are weighing down on fiscal headroom, and Mr Healey is expected to increase bank taxes in response.

He has rejected calls to hike capital gains tax at the Budget, amid concerns it could hamper economic growth.