BUSINESS leaders in the South East are asking the British Chambers of Commerce (BCC) to present to Government and the two opposition parties a list of radical proposals to cut red tape.

Drawn up following a survey of members across Kent, Sussex, Hampshire, Isle of Wight, Surrey, Berkshire, Oxfordshire, Buckinghamshire and Milton Keynes, the proposals are made for the political parties to consider in the run-up to the general election.

The report follows the recent announcement from BCC that red tape has now cost British businesses some £39 billion since 1998.

Peter Hobbs, chief executive of the Channel Chamber of Commerce, said: "We have drawn up an exhaustive list of recommendations. We just hope the political parties have the courage to implement them."

Some of the requests include:

* Combining Inland Revenue/Customs with National Insurance and increasing the tax rate appropriately to enable the abolition of a separate NIC, saving tax-payers an estimated £2 billion annually;

* Improving the tax position for SMEs selling their businesses to encourage a stronger marketplace. SME business assets are undervalued in most cases and this damages the entrepreneurial aims of the nation;

* Streamlining all tax structures and introducing two tiers of PAYE only;

* Legislating for zero changes to tax system beyond defined limits;

* Removing dividend tax;

* Substantially reviewing or abolishing inheritance tax;

* Machinery inspections being based on the time usage, not the time since the last inspection;

* With improved quality of motor vehicles MOTs only after five years, not three and then every two years thereafter;

* A reduction in police paperwork, so that more of the force is on the beat, targeting business crime;

* Allowing cars with a driver and two or more passengers to use bus lanes;

* No congestion charge in London for cars with a driver and two or more passengers;

* Abolition of tax discs, with a compensatory increase in fuel prices;

* Payments for third party insurance policies being covered in the price of fuel;

The survey claims the latter two changes would free up police time spent chasing those who break the law by not paying for tax discs and insurance.