The UK government has unveiled a package of deregulation measures intended to cut almost £800 million a year from business costs, making it the clearest business-focused announcement ahead of next week’s Budget.

The measures, announced on Friday by Prime Minister Andy Burnham, are designed to reduce paperwork, simplify compliance guidance and extend tariff suspensions on selected imports. The government said the package would give companies, particularly smaller firms, more “breathing space to grow”.

Small firms targeted

The largest element involves simplifying compliance guidance for small businesses, which ministers estimate will save £290 million annually. The policy is aimed at reducing the time and expense involved in interpreting and meeting regulatory requirements.

The government will also extend £155 million of import tariff suspensions covering 250 products used by British businesses. The move is intended to lower input costs for companies that rely on imported materials and components.

Financial and property sectors included

Asset managers are expected to benefit from the removal of duplicated reporting requirements, with estimated savings of £105 million. A further £116 million of costs will be removed for businesses involved in residential property transactions.

The package comes as ministers seek to present deregulation as a source of growth before the government’s first annual Budget statement next week. The Financial Times reported that the government claims its wider deregulation drive could cut business costs by £800 million a year.

Part of a wider Budget debate

The announcement arrives against a difficult backdrop for UK companies. Financial services firms are preparing for possible higher levies as the chancellor seeks to repair the public finances, while businesses are also monitoring potential changes to energy relief, capital gains tax, windfall taxes and property rules.

That tension places the government’s business agenda under scrutiny. Companies may welcome lower administrative costs, but the benefit could be offset if next week’s Budget raises taxes or increases sector-specific charges.

For smaller businesses, the immediate significance of the package will depend on how quickly the changes are implemented and whether the promised savings translate into reduced compliance work rather than simply revised guidance.

Still, the measures establish deregulation as a central theme of the pre-Budget message. With firms facing persistent cost pressures and uncertain demand, ministers are betting that a reduction in administrative and trading costs can support investment without requiring large-scale direct spending.