The government will on Tuesday announce plans to cut the red tape burden for businesses, charities and the public sector by another £2bn ($4bn) a year, saying it is already well on the way to hitting last year’s target of saving £4bn a year by 2010.

John Hutton, business, enterprise and regulatory reform secretary, will unveil a second round of simplification plans drawn up by 18 Whitehall departments and agencies as part of attempts to reduce administrative burdens.