About half of all new legislation that affects business derives from Brussels, Davidson said, "so it is important that the government and society are confident that European Union rules are written into the UK statute book as simply and effectively as possible".

The review's report, due to be submitted to the chancellor by the end of this year, could provide ammunition for ministers to cut back significantly the existing stock of red tape.

Mr Davidson pledged to recommend changes to regulations that go too far in implementing European laws, provided the review unearths such rules.

But he warned business that failure to provide hard evidence to back its long-standing gripes about gold-plating would render such complaints "much less credible" in future.

The review, which is being backed by the cabinet office, will take an in-depth look at the whole gamut of ways in which European laws may be "overimplemented" in the UK, Davidson said.