STRIPPING away the burden of unnecessary regulations could boost British productivity by at least £10bn, according to Government findings.

Cabinet Office Minister John Hutton and the Department of Trade and Industry Minister for Competitiveness Barry Gardiner are in the North-East today to discuss with local business leaders the Government's programme of regulation reform.

Mr Hutton said the potential economic gains from removing red tape in the UK and across the EU through the Government's Better Regulation Action Plan could be enormous.

"The independent Better Regulation Task Force report on reducing burdens suggested that changing our approach could boost British productivity in the long-term by over one per cent of GDP - this could represent at least £10bn," he said.

Mr Hutton and Mr Gardiner are in Gateshead to draw on business expertise as part of a consultation programme that will run until October 12.

"While surveys by organisations show that we are lightly regulated by international standards, we recognise that small businesses can suffer disproportionately from the cost of complying with regulations compared to larger firms," said Mr Hutton.

"We are determined to address this, taking into account the ideas and expertise of local business here in the North-East."