Business leaders have welcomed plans by Chancellor Gordon Brown to cut business red tape with a new "light touch" system of regulation.
Mr Brown, who has promised to reduce the number of inspections faced by firms by one million a year, was spelling out the Government's new " risk-based" approach at talks with business leaders. Birmingham Chamber of Commerce and Industry described the move as a "victory" following its campaign to reduce the regulatory burden.
But policy director Jerry Blackett sounded a note of caution.
He said: "We will be watching carefully to ensure that these are not just more words from the Government. "This problem has reduced Britain's ability to compete for years. We now look forward to some urgent action from the Chancellor."
The Black Country Chamber chief executive Ian Brough said: "As with every pledge of lighter regulation, we must wait and see what happens in the real world.
"Targeted inspections and a simpler VAT regime for small businesses are a real step in the right direction."
Mr Brown said that in the future, inspectors would target "bad traders" and confirmed the Government would bring in legislation in the new year to cut the number of regulatory bodies from 29 to just seven.
