The Government's announcement last week to give employers the opportunity to 'rip up' 21,000 rules and regulations that it says are preventing growth, has met with scepticism from the Institute of Directors (IOD).

The latest 'Red Tape Challenge' follows hot on the heels of the Government's 'Your Freedom' website for citizen-led de-regulatory suggestions and the last government's 'Better Regulation Portal'.

According to the IoD, neither predecessor of this 'Red Tape Challenge' made any difference to businesses on the ground. The IoD is concerned this two-year initiative could waste vital time that would be better used tackling known regulations now.

Despite these concerns, today the IoD has submitted 266 detailed regulatory case studies to the Government. These proposals were shared with the previous government, but resulted in no changes to the key areas.

IoD head of regulatory affairs, Alexander Ehmann, said: "The IoD is concerned that the 'Red Tape Challenge' will have as little impact as previous government efforts. The truth is that the Government know where the regulatory 'bodies are buried'. It's not a case of asking businesses for suggestions again and again, it about getting on with the tough decisions that de-regulation requires."