Reflections on the UK RIA System
UCL and ENA Conference: Theory and Practice of Regulatory Impact Assessments in
Europe
June 2013
Role of Impact Assessments
•
UK government will regulate to achieve objectives only when:
– “having demonstrated that satisfactory outcomes cannot be achieved by
alternative, self-regulatory or non-regulatory approaches”
– “regulatory approach is superior by a clear margin to alternative, selfregulatory or non-regulatory approaches”
•
A continuous process to help policymakers to fully think through
– Reasons for government intervention
– Comparing the various options for achieving policy objective
– Understanding the consequences of a proposed intervention
•
A tool used by policymakers to assess the extent to which regulatory
proposals impact on the UK
– likely costs and benefits
– associated risks
ROAMEF – IA Process
Regulatory Policy Committee
• An independent advisory body to provide external, real-time scrutiny
on the quality of evidence and analysis supporting new proposals
• Help ensure that Ministerial decisions on proposed new regulations
are based on a robust, evidence-based policymaking process
• Background of Committee members
– Academia
– Business experience
– Trade union experience
– Public policy
• Supported by a secretariat of civil servants
– Policy officials
– Economists
UK Regulatory Framework
1
RPC
Departments send IAs
to RPC for scrutiny
2
Scrutinises IAs:
Red (“Not Fit for Purpose”)
or Amber/Green (“Fit for
Purpose”) flags given
Opinions issued
to departments
Departments
Develop IA and submit to
RPC before a formal
clearance is requested
from RRC
RRC
3
IAs with RPC Opinions
go to RRC for approval
Makes final decision on
regulations
Jan 2011- present
• RPC Opinions have included a Red, Amber or Green
(RAG) flag
– RED: The IA is ‘Not Fit for Purpose’. Major concerns over the
quality of the evidence and analysis and overall quality of the IA
that must/need to be addressed.
– AMBER: The IA is ‘Fit for Purpose’. However, we will set out
areas of concern with the IA which should be resolved so as to
improve its contribution to the final decision made.
– GREEN: The IA is ‘Fit for Purpose’. No significant concerns or
some minor issues where the IA that could be improved to
deliver greater clarity or to aid understanding.
RPC Recommendations
•
Identified as integral steps in producing a high quality IA
1.
2.
3.
4.
5.
6.
7.
•
Don’t presume regulation is the answer
Take time and effort to consider all options
Make sure you have substantive evidence
Produce reliable estimates of the costs and benefits
Assess non-monetary impacts thoroughly
Explain and present results clearly
Understand the real cost to business
Aimed at strengthening the quality of analysis and use of evidence
in the policymaking process
‘One-in, One-out’
• “No new primary or secondary UK legislation which imposes costs
on business or civil society organisations (‘INs’) can be brought in
without identification of existing regulations of equivalent value that
can be removed (‘OUTs’)”
• Objectives
– Reduce the cost and volume of regulation in the economy
– Encourage implementing regulation only as a last resort
• Our responsibilities
– Validating the direction of the proposal
– Validating the size of the ‘IN’ or ‘OUT’ being claimed is robust
and credible
Proportionality
• Level of interest and sensitivity
• Degree to which proposal is novel, contentious or irreversible
• Stage of policy development
• Scale, duration and distribution of impacts
• Level of uncertainty
• Data availability
• Resources
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Percentage of first time
submissions
RAG Breakdown over 2011-2012
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
Impact of RPC Scrutiny
Strengths:
• Policy decisions now supported by a more robust evidence base
• Greater emphasis on potential alternatives to the initial proposal
• Independent validation of the estimated costs imposed by
Government on business
Limitations:
• Committee cannot comment directly on the aims or design of
specific policies
• IA can still be viewed as a bureaucratic obstacle
Contacts
• 1 Victoria Street, London SW1H 0ET
• Tel: 020 7215 1460
• E-mail: regulatoryenquiries@rpc.gsi.gov.uk
• www.independent.gov.uk/RegulatoryPolicyCommittee