Lord Mandelson has claimed that increased regulation should be a "last resort" in business policy, in an effort to encourage an economic recovery.
In a note sent to Whitehall officials, the Business Secretary has insisted that all other alternatives to regulation must be investigated first. This will come as a relief to business groups, many of which spend much of their time campaigning against 'red tape'.
But the move looks set to cause friction within the Cabinet, as it is likely to be seen as a direct attack on Harriet Harman. The equalities minister has recently been successful in driving through additions to the rules on paternity leave.
The note has been met with a lukewarm reaction from some commentators. British Chambers of Commerce (BCC) director general David Frost said, "We absolutely agree with it, but the issue we have is that the rhetoric is there but not the action."
The BCC has campaigned against a raft of measures intended to make employment legislation fairer for workers, including the equality bill, paternity leave and the right to time off for training.
