By Maximilian Clarke

The government is to shave a further £4 million from the regulatory incurred by UK businesses, a report shows, in a move that has been welcomed and ridiculed by businesses.

The Third Statement of New Regulation, which measures the success of the One-in, One-out rule, shows that there has been a cumulative net reduction of regulation since January 2011.

“The One-in, One-out process is one of the best tools we have to cut the costs and burden of regulation on our businesses,” explains Business and Enterprise Minister Mark Prisk. “The system is starting to deliver results, capping the costs to business and then driving them down."

However, a leading accountant from ICEAW observes that the £4m sum when spread among the UK's 4 million small businesses, is unlikely to have any great impact:

“In a recent ICAEW survey, over two-thirds (68%) of our members did not know about the commitment to have a ‘one-in, one-out’ approach to business regulation. The findings revealed today in the cost of red tape (£4.17 million between Jan-June 2012) are tiny compared to the massive cost of regulation to businesses overall. Whilst some of the measures will be welcomed by individual sectors, they will have little impact on the majority of businesses.”

The new statement also shows that Departments have started to remove legislation as a result of the Red Tape Challenge and deregulatory measures designed to reduce the burden on business are in the pipeline for later this year.

“Economic growth is crucial and all Departments should be aware that everything they do impacts on the growth agenda," added Lord Curry, Non Executive Chair of the Better Regulation Executive. "The business community is looking for evidence and Departments need to recognise that any regulation they introduce will affect business in some way.

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