Business Secretary Sajid Javid launches plan to slash £10bn of red tape for small businesses

The government is to announce today 19 May that it aims to cut at least £10bn of red tape for businesses over the next five years in a new Enterprise Bill that will back business to create jobs.

New measures will be announced in Sajid Javid's first speech as Business Secretary in Bristol, the city where he grew up above his parents' shop.

Speaking at the Engine Shed business centre, Javid is expected to say that the Bill will help make Britain the best place in Europe to start and grow a business, and help to create two million more jobs over the next five years, so that more people have the security of a regular pay-packet.

Javid said: "Small businesses are Britain's engine room and the success of our whole economy is built on the hard work and determination of the people who run and work for them. As Business Secretary, I will always back them and, in my determination to get the job done, one of my first steps will be to bring forward an Enterprise Bill that helps them to succeed and create jobs.

"As part of our long-term economic plan, we will sweep away burdensome red tape, get heavy-handed regulators off firms' backs and create a Small Business Conciliation Service to help resolve disputes."

Business Minister Anna Soubry said: "This will be a no-nonsense Bill to back small businesses and help to create jobs, giving financial security and economic peace of mind to hardworking people across the country.

"We will be asking businesses for evidence in the coming weeks and months. We want them to be our partners in identifying and scrapping needless burdens at home and in Europe. It's important Government gets behind small businesses – enabling them to get finance, get paid on time and get rid of red tape."

The government says it will look beyond Whitehall and extend streamlining to independent regulators for the first time. They will be expected to contribute to a target of at least £10bn.

Another central measure in the Enterprise Bill will be the creation of a Small Business Conciliation Service to help settle disputes between small and large businesses, especially over late payments. Small firms are owed over £32bn in late payments, but many of them are not aware of their rights or are reluctant to launch legal challenges. This service will build on the existing suite of measures to tackle poor payment practices.

The Bill will also support businesses through the extension and simplification of Primary Authority, which allows a business to get advice on regulation from a single local council and this must then be respected by all other councils.