A Government announcement to cut red tape and review legislation has been welcomed by the Forum for Private Businesses (FPB).

Last year research by the FPB revealed that red tape costs smaller employers, such as pubs, £9.3bn a year in internal costs and that they spend 37 hours per month ensuring they comply with the law.

The announced plan includes a new cabinet star chamber to spearhead the drive to reduce red tape plus an immediate review of all forthcoming regulation.

The Forum's chief executive, Phil Orford said: "Our calls for a comprehensive review of red tape finally appear to have been heard. The first job of the new star chamber will be to scrutinise all new regulations that are in the pipeline and that has to be welcomed.