Mr Healey says his measures aims to cut £800 million worth of red tape that will ease cost pressures on both companies and households.

Robert Begbie, who this week took up the newly-created role of CEO of Commercial & Institutional at NatWest, said: “As the UK’s biggest bank for business, we spend a lot of time speaking to entrepreneurs and growing businesses across the country.

“A consistent theme we hear is that business owners are often required to wear many hats, balancing day-to-day operations alongside the administrative and regulatory demands that come with running a business.”

He said the announcement is a “positive step” towards addressing some of those challenges.

“Reducing unnecessary complexity can help founders spend less time on paperwork and more time focused on customers, innovation, investment and growth,” he added.

“Through NatWest Accelerator, we see first-hand the ambition that exists across the UK’s start-up and scale-up community. The challenge is often not ambition, but having the time, confidence and support needed to turn that ambition into sustainable growth.

“Creating the right conditions for businesses to focus on growth, alongside access to finance, skills and networks, will help more businesses start, grow and scale across the UK.

“We look forward to seeing the detail behind today’s announcement and how it can help businesses spend more time growing their business and less time navigating unnecessary complexity.”

Mr Healey and Prime Minister Andy Burnham were meeting small business leaders at No. 10 North today.

They want to cut back the regulatory administration that businesses are required to do by 25% by the end of this parliament.

Mr Burnham said: “If you run a business, you want to spend your time serving your customers, creating jobs and growing your firm, not filling in unnecessary forms.”

Mr Healey added: “British firms are fed up with form-filling and pointless paperwork that eats into valuable time and money when they simply want to get on with running their businesses. That is why we are cutting unnecessary bureaucracy and giving businesses the breathing space they need to invest, innovate and create good jobs.”