The controversial sunset clause in the Retained EU Law Bill, which is currently being considered by MPs, will no longer apply to all retained EU law and will instead “be clear which laws we intend to revoke at the end of this year”.

Ministers said the new approach would “provide certainty to business by making clear which regulations will be removed from our statute book”.

The announcement came as the government confirmed it intended to relax reporting requirements for businesses, which it said would help employers save over £1 billion per year.

Business and Trade Secretary Kemi Badenoch said: “I have listened to the concerns of business of all sizes and have made it a priority to tackle the red tape that holds back UK firms, reduces their competitiveness in global markets and hampers their growth.

“We are taking back control of our laws after Brexit, reducing and improving regulation and giving businesses the freedom to do what they do best — sell innovative products, create jobs and grow the economy.”