Two new red tape watchdogs announced by Lord Mandelson more than two months ago have yet to be set up, fuelling business concerns the government has downgraded its efforts to reduce the regulatory burden on companies.

The business secretary announced two new committees to vet red tape on April 2. The move was intended to assuage business anger at his decision to axe a radical plan to impose regulatory budgets, curbing the amount of red tape each Whitehall department could introduce.