Today witnessed the first ‘red tape day’ in which new legislation was scheduled for introduction with a common commencement date.

Under the system, new regulations will be implemented on just two days a year, 1 October and 6 April. Previously legislation has been introduced in an arbitrary fashion causing unaware businesses much confusion.

Most business groups welcomed the change but warned that it should not be seen as a substitute for more fundamental action.

The Institute of Directors (IoD) said that a single start date for new regulations makes it easier for business to keep up to speed with new rules, but said that red-tape continued to be a huge business burden and needed to be cut.

James Walsh, head of regulatory affairs at the IoD, said:

“The common commencement date approach is welcome and should be extended beyond employment measures, but more action is needed to get to the root of the red tape problem.

“We still need to tackle the pro-regulation mindset that pervades Whitehall and Brussels.”

The legislation taking effect from 1 October includes:

• Dispute resolution regulations
• Employment tribunal rules
• Removal of the exemption for small businesses to the Disability Discrimination Act regulations
• Changes to the Minimum wage rate – the adult rate will rise to £4.85 while the youth rate will hit £4.10 and a new rate for 16 and 17 years old will give them the right to work for at least £3.00 an hour

Additionally the IoD said it was also strongly in favour of extending the ‘common commencement date’ approach to EU measures.

Walsh added: “With around half of new business regulations originating in Brussels, the new common commencement date approach will fail unless it is extended to EU measures as well. There is plenty of talk about “Better Regulation” at EU level. Following British best practice on common commencement dates would be a practical step forwards.”