We need a stronger deregulation agency so business has a voice within government in constraining regulation

Andrew Lansley

The government has pledged to review the legislation in three years time to see if it is succeeding in tackling bureaucracy.

The Conservatives welcomed the Bill but said it did not go far enough.

Shadow Cabinet Office minister Andrew Lansley called for tougher powers to tackle red tape.

"We need a stronger deregulation agency so business has a voice within government in constraining regulation."

Frequent use

Junior Cabinet Office minister Graham Stringer rejected Tory claims that regulation was increasing under the Labour government.

"This is not the most heavily regulated country - studies show it is the least in the OECD.

"I look forward to this Bill's wide and frequent use in improving this country's regulatory regimes."

Opposition trade spokesman Richard Page said the Tories would welcome any initiative that reduced the bureaucratic burden on business.

But Labour had so far failed to live up to its promises on cutting red tape and it remained to be seen if this measure would make any difference, he said.

It would only provide half the answer because the government "sausage machine" would continue to produce new regulations.

Conservative MP John Bercow also called for more to be done.

"There is a real desire on the part of the authentic voices of British business for deregulation and for review of the existing encumbrance of regulation which is damaging our companies."