Cameron and Cable take the scissors to legacy of red tape

Business secretary Vince Cable's regulatory action plan includes the creation of a "star chamber" which he will lead to look at ways in which the burden on companies can be cut.

The coalition Government wants to see which regulations pencilled in for implementation can be scrapped in an effort to boost enterprise and spur economic growth.

Prime Minister David Cameron has said he wants to make Britain one of the most attractive places to do business.

"The deluge of new regulations has been choking off enterprise for too long," Mr Cable said. "We must move away from the view that the only way to solve problems is to regulate."

Business leaders gave a cautious welcome to the announcement.

Richard Lambert, director-general of the Confederation of British Industry, said: "We welcome this approach to controlling and reducing the ever-growing burden of regulation but it is only the first step in a process, which will require a major cultural change in Whitehall and innovative new thinking about the Government's whole approach to risk and regulation."