The Conservatives have committed themselves to reducing the regulatory burden by about a quarter in their first term in office, John Redwood, the party's deregulation spokesman, said yesterday.

Each department would draw up a regulation budget, Redwood said.

The CBI called on all the main parties to "remember that business is pretty much knee deep in political promises on deregulation."

The employers' organisation also questioned the effect of the Tory proposals to axe 80 per cent of the DTI's head office staff.