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REPORT SAYS PLANNING LAWS HIT COMPETITIVENESS

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A report compiled for the treasury and the department of the environment, transport and the regions will identify p...
A report compiled for the treasury and the department of the environment, transport and the regions will identify planning regulations as a serious problem for business competitiveness.

According to The Financial Times (p14), the report by McKinsey, the management consultancy, is likely to be published later this month or in early November and follows Downing Street seminars in which dozens of senior businesspeople have participated, along with ministers and civil servants.

Those close to the report say there is no 'magic bullet' that will resolve the UK's productivity and competitiveness problems. However, it will point to regulatory problems restricting productivity growth.

One of these is the impact of planning regulations, particularly on small businesses. One example is the difficulty of obtaning permission to rewire listed buildings to cope with modern information technology.

The reports is expected to say that relaxing planning regulations would give significant help to many companies. However, it will acknowledge there might be a significants environmental downside in easing regulations intended to protect the UK's architectural heritage.
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