Businesses rejoice as Whitehall starts the cull of quangos

Business groups today welcomed the abolition of 15 quangos relating to the commercial world, although many of those included in today's 23-page list had already been axed.

Another six will be merged, 21 retained and nine given further consideration.

Organisations whose closure was announced today included the Aircraft and Shipbuilding Industries Arbitration Tribunal, British Nuclear Fuels and the Union Modernisation Fund Supervisory Board. British Shipbuilders will be shut because its remaining functions are carried out by the Business Department.

The Government also confirmed the closure of eight Regional Development Agencies. The Design Council and Nesta — the National Endowment for Science, Technology and the Arts — are set to change from a public body to a private sector charity.

Steve Radley, director of policy at the Engineering Employers Federation, said: "Whilst business will not mourn the passing of many of the bodies announced today, some were doing valuable work which must not be lost amidst the widespread cull."

The London Thames Gateway Development Corporation will also be abolished as part of the Government's drive to shift regeneration and planning decisions back into the hands of local councils.

Home Builders' Federation director John Slaughter said: "The criticism of Thames Gateway redevelopment was the multiplicity of bodies involved."

Many of the quangos listed today had already been wound down. The Genetics and Insurance Committee, which investigated how insurers use genetics-testing when setting premiums, was wound down on July 1, 2009.

Big business groups welcomed the merger of the Office of Fair Trading and the Competition Commission as it would massively reduce the time investigations take. Matthew Fell, the CBI's director of competitive markets, said: "The merger would improve efficiency by cutting duplication. It would also benefit businesses by speeding up merger reviews and market investigations, reducing the time firms are left in limbo." But one City lawyer said it was "very disappointing", claiming it could create confusion.

A host of healthcare industry-related quangos were abolished, including the British Pharmacopoeia Commission, the Health Protection Agency, the Advisory Committee on Hepatitis and the Council for Healthcare Regulatory Excellence. An AstraZeneca spokesman said: "We are reviewing the announcements and will work with Government."