The action plan:

- Creates a new Cabinet “Star Chamber” that will lead the Government’s drive to reduce regulation which is stifling growth, especially of small businesses.  It will be chaired by the Business Secretary and will enforce a new approach to new laws and regulations, ensuring that their costs are being properly addressed across the entire British economy.

- Reviews with immediate effect all regulation in the pipeline for implementation which has been inherited from the last Government.  There are currently 200 new regulations planned for implementation before April 2011 with an annual cost of over £5 billion.

- Establishes a new “challenge group” to come up with innovative approaches to achieving social and environmental goals in a non-regulatory way. This team would work with experts including Richard Thaler, the US behavioural economist.

- Introduces a new “one-in, one-out” approach that is to make sure that new regulatory burdens on business are only brought in when reductions can be made to existing regulation.