Brown this week told the CBI Annual Conference in London that he wanted to introduce a "new model of regulation" centred on a "risk-based approach... based on trust in the responsible company, the engaged employee and the educated consumer."

He said that the measures would save small businesses 300m per year in administrative costs and that Revenue & Customs would be the first Government department to be set the targets.

In an approach that he described as "not just a light touch but a limited touch", Brown intends to reduce the burden on firms by abolishing blanket inspections of premises, procedures and practices for all companies, in favour of a focus on problem firms.

Tax self-assessment and other forms will also be simplified and the practice of "gold-plating" or toughening up European regulation would be abolished.

Reactions from the industry were mixed. Ian Cooper, Cooper Clegg managing director, said: "A lot of red tape is very tedious. There is a lot of talk about deregulation but we see little evidence of it actually happening."

Cicely Brown, BPIF deputy chief executive, said that the proposals were expected but that the Government needed help from business to establish the areas of regulation to target. "The regulations that are pointless are sometimes also the most difficult to identify," she said.

Dorian Burrows, head of marketing at The Valley Group, said he would be "delighted" if Brown succeeded in cutting red tape. But he added: "However, being the sceptic I am I have a feeling that he will replace it with something else."

Brown's red tape plans
Legislation on regulation to be passed before Christmas
- Establish a "risk-based approach"
- Abolish form 42 for 90% of firms
- Simplify tax and self-assessment forms
- Introduce a single filing date at Companies House
- Abolish and repeal "gold-plating" of EU regulations