New online tools will slash £290m in red-tape

More use of electronic filing, registration and search systems at agencies including Companies House and the Patent Office could save businesses £290m over the next five years.

The moves form part of government plans to slash £1bn from the cost of red tape to businesses by 2010.

The Department of Trade and Industry said large public companies will be able to cut costs by sending electronic rather than paper versions of annual reports.

The DTI said: "All companies will now be able to use their websites and email more freely for communication with their shareholders, potentially saving up to £400,000 per mailing."

The DTI predicts that new e-government services and harmonised joint filing at Companies House will save businesses £217m over five years.

A new web-based application form for trademarks will reduce administrative time and costs.

The www.businesslink.gov.uk website will also be beefed up to help businesses, particularly small firms, to understand regulation including what does and does not apply to them.

Improvements to the web portal, which will offer alerts to new regulations, will save £74m.

David Frost, director general of the British Chambers of Commerce said in a statement: "Employers warmly welcome this commitment to cut over £1bn of regulatory burdens. Complicated and costly regulations are one of the main barriers to business growth, especially for smaller companies."