Government moves to cut business red tape and bureaucracy have received a mixed response from local business bodies.

They have been welcomed by Bradford Chamber of Commerce, which has long campaigned for business to be spared overbearing regulation.

But the measures have been met with scepticism by some other groups, such as the Institute of Directors.

Business Secretary Vince Cable said he wanted to tackle unnecessary Government interference and encourage a “fundamental shift” in how Whitehall uses regulations.

Measures will include a “one-in, one-out” system from next month so that when ministers introduce new regulations which impose costs on business, they will have to scrap a current regulation first.

The Regulatory Policy Committee will study any new proposals before decisions are made, said Dr Cable, adding: “We have to move quickly, delivering credible and meaningful reductions in the burdens that hinder hard-pressed businesses and charities.

“We have to create a commonsense approach in the way we think about new laws.

“By ensuring regulation becomes a last resort, we will create an environment that frees business from the burden of red tape, helping to create the right conditions for recovery and growth in the UK economy.”

Harold Robinson, president of Bradford Chamber of Commerce, said: “We are pleased with the Government’s efforts to reduce regulatory burden; it often holds back business growth.

“A ‘one-in, one-out’ rule, along with stronger scrutiny of both UK and EU regulatory proposals, is a step forward. “The Regulatory Policy Committee is also making a difference – holding Whitehall departments to account by rigorously assessing proposed regulations is crucial in helping business to drive forward economic growth.”

But the Institute of Directors said it had a number of concerns.

John Thompson, IoD regional director, said: “The fact that the one-in, one-out system will consider business benefits as a means of reaching a net cost for regulations, is concerning.

“The approach should be to identify pure costs to business alone, rather than encouraging the creation of a regulatory offsetting industry in Whitehall where civil servants attempt to capture hypothetical business benefits.

“If the Government was really committed to easing the burden on business, then the RPC would have been composed of businesses and their representatives alone, providing the real challenge on red tape that Government so desperately needs.”