Vince Cable: 'We will deliver on promises to cut business red tape'

In a keynote speech at the Mansion House in London, Cable claimed: "The most important reform to regulation must be to recognise it is the smallest companies that bear disproportionately the heaviest burden from new rules."

The UK benefited from upholding high standards in audit and accounting, Cable said, but small company rules were stricter here than in other EU countries.

"We will change the law to simplify small company audit rules, saving UK companies up to tens of millions in unnecessary audit fees.

"And we will reduce the costs for subsidiaries of larger companies," the Business Secretary said.

He added that SMEs which "can't afford dedicated staff to measure and note down whatever the government demands" should also benefit from planned less complicated financial reporting requirements.

"So we welcome the Accounting Standards Board consultation on the reporting requirements for 35,000 medium sized companies," Cable said.

He contrasted this approach with that of successive previous governments that he said had "made ritual commitments to reducing red tape but have added to it, inconveniencing businesses large and small".

Cable said he was also determined to free up the planning logjam that was stopping business expansion in the UK, branding the market in land as "dysfunctional".

He said he and Cabinet colleague Eric Pickles, the communities and local government secretary, wanted local communities to benefit from growth "and the standard answer (to planning applications) to be Yes, not No."