The Statement says the costs of business regulations have been capped during 2011, with a gross reduction in costs of over £3 billion.
Business minister Mark Prisk said: "During 2011 we have made real progress in cutting the costs of red tape for businesses. As well as the £3 billion saving for employers from the new indexation of pensions, we have seen a capping of other regulatory costs, and a substantial rise in the numbers of deregulatory measures. "This is an encouraging sign that the culture in Whitehall is beginning to change. People are beginning to realise that regulation must be the last resort, not the first option. There is much more to do - especially so that businesses really notice the difference - but this first year is very promising."
The first Statement of New Regulation was published in April and set out the Government's plans to reduce the cost to business from domestic regulation. The One-in, One-out programme covers UK based regulation.
But Adam Marshall, director of policy and external affairs at the British Chambers of Commerce, said: "This statement shows that ministers have failed to stem the flow of new regulation - even on their own measures. No Government, anywhere, should impose £45 million in new costs on businesses in the midst of a bumpy recovery and uncertain global economic climate.
"For business, this is where ministerial rhetoric comes crashing down and reality bites. The argument that 'regulation could have been much worse' falls flat in the real world, where patience on de-regulation is wearing thin. Ministers have promised much and must deliver.
"Worst of all, this Statement doesn't include the Agency Workers' Directive - the proverbial elephant in the room. The Government has already admitted that AWD will cost British business over £1.5bn each year, far more than any of the tiny regulations they are removing today. The Cabinet should have taken the chance to delay AWD, strip out the huge and unnecessary extra costs put in by our own civil servants, and save UK jobs."
The Government says it is continuing to "work hard" to reduce the flow of regulation from Europe. The extended timescale for agreeing and implementing EU legislation means the results of this work will take time to have an impact on costs to business.
The Red Tape Challenge is running until 2013, designed for the public and business to tell government which rules are working and which are not. And next month the Government will propose new rules to reduce financial reporting requirements for small businesses. This will allow more small companies and subsidiaries to decide whether or not to have an audit. The Government is also proposing to introduce legislation next year to exempt from mandatory audit most subsidiary companies whose parent is prepared to guarantee their debts.
