The proposals, which are expected to be endorsed by Conservative leader David Cameron, aim to cut the amount of legislative red tape that business are forced to follow by Whitehall and Brussels.
Euro-sceptic John Redwood, who drew up the proposals, told The Sunday Telegraph it would be “the biggest attempt at tackling deregulation ever made by a British government.”
“British business would get a saving of GB pound 14 billion a year, which would be a tax cut by any other name,” he said. “It would be on top of any other tax cut the government could achieve.”
However, critics have branded the radical policy re-think as a move to the right as the Conservatives struggle in the opinion polls.
Cabinet minister Andy Burnham said: “The right-wing old guard feel emboldened by David Cameron’s loss of authority to push their agenda once again.”
This week, a YouGov poll gave Gordon Brown’s labour party a ten-point lead- the highest since before the invasion of Iraq.