Finance minister John Swinney welcomed the findings of a report into red tape in Scotland which he said would signal the start of a new, more productive approach to regulation, featuring much better co-operation between business and government.

Finance minister John Swinney welcomed the findings of a report into red tape in Scotland which he said would signal the start of a new, more productive approach to regulation, featuring much better co-operation between business and government.

However, the author of the report warned there was a long way to go if Scotland hoped to become a leader in easing the regulatory burden on business.

"To achieve what we believe is possible, to make Scotland the leader in regulation, in terms of its appropriateness and proportionality to all parties involved, will take a real culture shift across business, government and its regulators," said Professor Russel Griggs, chair of the Regulatory Review Group.

Including representatives from business organisations, the group produced a report aimed at turning long-standing concerns about the problem of red tape into concrete proposals for reform.

The report says government and business should move to a way of creating and changing regulation which is a true partnership between both parties. The group wants all government departments and regulators that introduce or enact legislation affecting business to have a group of businesses road test' all relevant legislative literature and forms prior to implementation.

It said Scottish Government should be able to make its own case directly to the EU rather than relying upon Westminster.

Iain McMillan, director of CBI Scotland, said: "Red tape is one of the most significant avoidable constraints on competitiveness and business growth. The Regulatory Review Group has done a fine job in developing proposals that are acceptable both to business and government."