The UK Deregulation agenda –
tackling the stock and flow of
regulation
Gordon Maddan
Programme Manager - Business
UK Government ambitions for business
• To back British businesses: cutting red tape, lowering taxes on jobs
and enterprise, getting young people into work,
• boosting apprenticeships and investing in science and technology.
• Britain will be the best place in Europe to innovate, patent new
ideas and set up and expand a business.
• Aim to be number one in Europe and in the top five worldwide in
the World Bank’s Doing Business rankings by 2020 and to lead
Europe in attracting foreign
investment.
• To deliver a further £10Bn of deregulation savings for business by
2020.
•
UK Principles of Regulation
The Government will regulate to achieve its policy
objectives only:
(i) having demonstrated that satisfactory outcomes cannot be achieved by alternative,
self-regulatory, or non-regulatory approaches
(ii) where analysis of the costs and benefits demonstrates that the regulatory
approach is superior by a clear margin to alternative, self-regulatory or non-regulatory
approaches
(iii) where the regulation and the enforcement framework can be implemented in a
fashion which is demonstrably proportionate; accountable; consistent; transparent and
targeted.
There will be a general presumption that regulation should not impose costs
and obligations on business, social enterprises, individuals and community
groups unless a robust and compelling case has been made.
The Government will adopt a One-in, Two-out approach
•
Stock and Flow
of regulation
•Change in policy making
culture - regulation only
when necessary
– One in two out
– Red Tape Challenge
– Alternatives to
regulation
– Impact assessment
– Growth duty
Regulatory Delivery
• Risk based, targeted,
proportionate enforcement
•Proactive compliance support
• Change in culture
– Competency
– Consistency
– Accountability
- Alternatives to inspection
Initiatives to date
•
One-in, One-out and then One-in, Two-out, the Government has delivered
combined net annual savings to business of £1.19 billion per annum.
•
The Red Tape Challenge identified over 3,000 regulations to scrap or improve
delivering annual savings of over £850 million to business.
•
Independent scrutiny of Impact Assessments by the Regulatory Policy Committee
and approval requirement for all proposals through the Reducing Regulation
Cabinet Committee has significantly improved the regulation making process
•
BRDO Primary Authority, Growth Duty and Regulators code, Competency
frameworks and Better business for all initiatives have led to improvements in
coordination of delivery, support and enforcement.
•
There has been a continuing fall in the number of businesses that see regulation
as an obstacle to business success – from 62% in 2009 to 51% in 2014.
Impact assessment process
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Process set out in a ‘Better Regulation Framework Manual – Practical
guidance for UK Government Officials
Required for all regulatory proposals impacting on business costs
Completed by Government department policy leads with support of
Departmental Better Regulation Units
Final impact assessment must be signed off by Departmental Minister
and Permanent Secretary.
Has to be scrutinised by Regulatory Policy Committee and assessed as
‘Fit for purpose’ before proposals can proceed to the Cabinet Reducing
Regulation Committee.
Red and amber rated assessments have to receive further work and be
resubmitted for RPC approval
Issued at same time as consultations and when final regulations and Acts
are published.
Impact assessment
Impact assessments completed
2010
663
2011
491
2012
472
2013
415
2014
393
2015
238 (election year)
Small and Micro Business Assessment
Regulatory measures should only extend to small and microbusinesses where any disproportionate burden is fully mitigated
• The small and micro-business assessment (SaMBA) is intended
to ensure that all new regulatory proposals are designed and
implemented so as to mitigate disproportionate burdens. The
assumption is that there will be a legislative exemption for
small and micro-businesses where a large part of the intended
benefits of the measure can be achieved without including
them.
Small and Micro Business Assessment
Mitigation approaches to be considered:
•
Full exemption (default option)
•
Partial exemption
•
Extended transition period
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Temporary exemption:
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Varying requirements by type and/or size of business:
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Specific information campaigns or user guides, training and dedicated
support for smaller businesses
•
Direct financial aid for smaller business
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Opt-in and voluntary solutions
Regulatory Policy committee
Independent body with secretariat provide the government with external, independent
scrutiny of new regulatory and deregulatory proposals.
•
reviewing evidence and analysis supporting new regulatory proposals, and checking
them before proposals are agreed by ministers
•
ensuring the government’s estimates of costs and benefits to business as a result of
regulation are accurate
•
looking at small and micro business assessments within impact assessments
•
settling disputes between non-economic regulators and businesses with reference to
the new guidance on accountability for regulator impact
•
Where a new regulatory measure does not qualify for the fast track, its impact
assessment must be assessed as “fit for purpose” by the Regulatory Policy
Committee before clearance is sought from the Reducing Regulation sub-Committee.
Reducing Regulation Committee
• A Cabinet sub-committee established to take strategic
oversight of the delivery of the Government’s regulatory
framework.
• Pre-Clearance required for all proposals before public
consultation
• Considers Government principles of Regulation, Impact
assessment, RPC opinion on IA and meeting one in two out
rules.
Parliamentary scrutiny
• Parliamentary Scrutiny Unit assists MP Select Committees in
evaluation of Impact Assessments
• Oral, Written parliamentary questions on Impact assessments
increasingly prevalent.
Making sure the business view is heard
‘You can’t regulate what you don’t understand’
• Business Reference Panel
• Consultations
• Expert Panels
Business Reference Panel
•Regulatory experts from 150+ Trade Associations, Business Representative Bodies and
Individual businesses.
• Link to those representing the views on regulation of over 2.0 million businesses
• Meets as a full panel four times a year (BRDO update, discussions with external
presenters, headline speaker, radar session, BRDO consultations).
• Breaks into representatives of Small and Local, Large and Multisite, Food and other
Manufacturing for discussion sessions.
• Idea to broaden interest and understanding of regulatory delivery and actively engage
participants in driving change. To get members to see the broader picture rather than
issues as just affecting their own sector or business.
• RPC, DH, FSA, CCP, CMA, TSI, CIEH, CFOA, EA, HSE, ASA have consulted panel
Small and Local
Food, Manufacturing, Services
Large and Multisite
Business Reference Panel Outputs
• Better regulation Reports:
– Age restricted products and services
– From the Business end of the Telescope
– Date coding of food
– High Street regulation
• Thought leadership:
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Extension of PA to Trade Associations
Revision of the Regulators Code
Growth duty
Need for expert panels
Expert panels
• Bring together:
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Government policy leads
Local Authority enforcers
Self and Co-regulatory bodies
Trade Association experts
Aim to resolve problems quickly by getting the right
people round the table.
Examples Food Standards and Labelling, Age
restricted products, Leisure and Entertainment.
The UK Deregulation agenda –
tackling the stock and flow of
regulation
Gordon Maddan
Programme Manager - Business