PRIME Minister David Cameron says the Government will cut regulations to help small businesses grow.

Mr Cameron told the Federation of Small Businesses the Coalition will reduce the burden of red tape on companies.

His vow came as Labour announced plans to create a US-style Small Business Administration to work across Government to increase growth.

Loading article content

Mr Cameron said many small firms complained about being held back, and insisted action was being taken in Whitehall and Brussels to reduce regulation.

He said: “This is going to be the first Government in modern history that at the end of its parliamentary term has less regulation in place than there was at the beginning.

“We have identified 3,000 regulations we are going to scrap and we've already got rid of 800 of them.

“If you want to sell oven cleaner in this country, you need to have a poisons licence.

“That is a piece of pointless regulation that can go.

“If you are a childminder and you serve your children food, you need to have a food licence, and that's another one that has to go.

“You can currently sue your employer if one of your customers is rude to you too, and insulting though that might be, I think that's another regulation that needs to go.”

Mr Cameron said the drive against regulations was not only taking place in the UK, but across Europe, and said he also wanted to help small businesses with banking.

He added: “We are still not seeing enough lending to small businesses.

“Small business is the lifeblood of our country.

“The people who decide to go it alone, to set up a business, to set out on their own, are in my view heroes and heroines.”