Cutting ‘red tape’ is nothing but a red herring – and arguably counterproductive | Heather Stewart

The UK government's promise to

slash the red tape choking firms

, is a hackneyed neoliberal cliché that has long outlived its usefulness, according to Heather Stewart in The Guardian — Politics. The phrase, named after the tape once used to tie up government bills, was popularised by the historian Thomas Carlyle and has been repeated ad nauseam by every government since Thatcher and Reaganite economics. Thatcher's

big bang

, deregulation drive unleashed the City, while her successor John Major was enthusiastic about

,hacking back the jungle of red tape

.

The Labour government, led by Andy Burnham, is yet to let go of this tired trope, despite its pledge to

,end 40 years of neoliberalism

. The government's Employment Rights Act, which increases workers' rights, is a significant increase in regulations, but it is not a

,bonfire of red tape

. Labour posing as a champion of deregulation will seem unconvincing, given this context. The march of neoliberalism itself is a reason regulation has mushroomed in recent decades, as the state retreated from providing important services, watchdog institutions to oversee the private sector became necessary, argued Labour MP Yuan Yang in a recent lecture for the journal Renewal.

The idea that regulation is a

,boot on the neck

, of British business, as Labour MP Rachel Reeves put it, is also unhelpful. Good regulation, such as a robust competition regime, is essential to make markets work well. Even most enthusiasts for a laissez-faire approach would acknowledge the need for some basic quality standards, for food and medicines, for example. The UK government's approach to regulation is not about ensuring the interaction between business and the state is smooth, but rather about cutting regulations for the sake of it, which is arguably counterproductive.

The UK government's promise to slash regulations is a red herring, and it is time to move beyond this tired neoliberal trope. The government should focus on implementing smarter regulation, not less regulation, to ensure the interaction between business and the state is smooth and beneficial for all parties involved.