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Agenda
• The UK’s Better Regulation Framework
One-In, Two-Out
Focus on Enforcement
• The Red Tape Challenge
Methodology
Successes
Lessons Learned
2
3
UK’s better regulation programme
• Priorities: less regulation, better regulation, and regulation
as a last resort
“I want us to be the first
government in modern history
to leave office having reduced
the overall burden of regulation,
rather than increasing it.”
Prime Minister David Cameron’s letter to all Cabinet Ministers
6 April 2011
4
Key Framework Components
Stock
(Existing Regulation)
Flow
(New Regulation)
Red Tape Challenge
Focus on
Enforcement
One-In, Two-Out
European
Regulation
5
‘One-in, Two-out’ • Each Department (Ministry) must ensure that
the value of new INs is offset by OUTs of
double that amount
• All new regulation requires an Impact
Assessment quantified as Equivalent Annual
Net Cost to Business(EANCB)
• All IAs subject to independent verification by
Regulatory Policy Committee (RPC)
Total value of
‘INs’ £30M
Total value of
‘OUTs’ £60M
Ranking Department OITO position
(SNR5-7) (£m)
1 Department for Communities and
Local Government -£102.01
2 Department for Business, Innovation
& Skills -£68.12
4 Department for Transport -£46.77
5
Department for Culture, Media &
Sport /
Government Equalities Office
-£40.78
6 Department for Environment, Food
& Rural Affairs -£27.88
7 Department for Work & Pensions /
Health and Safety Executive -£11.23
3 Department of Energy & Climate
Change -£3.67
8 Food Standards Agency -£0.67
9 Ministry of Justice £0.00
10 Cabinet Office £0.00
11 Department of Health £0.00
12 Department for Education £2.78
13 Home Office £10.69
14 HM Treasury £26.00
Focus on Enforcement • Sector reviews of business experience of enforcement of legislation
in an area. E.g. fire safety, small food manufacturing, chemicals
• Findings not recommendations. Departments/ regulators determine
actions in response
• New initiative announced in Dec 2013: “Business Focus on
Enforcement”. Business Groups invited to bid to run reviews of
regulatory enforcement
• BIS Ministers selected 3 ‘pathfinder’ reviews
6
Red Tape Challenge
• A cross-Government programme to
tackle inherited stock of regulations
• A public website to let business and
taxpayers have their say about
burdensome regulations they face
• Intention is to root out unnecessary,
overcomplicated regulation that
strangles businesses and economic
growth
7
8
Red Tape Challenge: Tackling stock
8
The Prime Minister set a challenge in April 2011:
“We need to tackle regulation with vigour both to free businesses to
compete and create jobs, and give people greater freedom and
personal responsibility... Our starting point is that a regulation should
go or its aim achieved in a different, non-government way, unless
there is a clear and good justification for government being involved.
And even where there is a good case for this, we must sweep away
unnecessary bureaucracy and complexity, end gold-plating of EU
directives, and challenge overzealous administration and
enforcement” http://www.number10.gov.uk/news/letter-from-the-prime-minister-on-cutting-red-tape/
9
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments and concerns raised
2. Assign them to themes
3. Launch a theme and seek views
5. Internal/External Challenge 6. Star Chamber
8. Collective Agreement &
Reducing Regulation Committee
9. Second Implementation Star
Chamber
1. Identify regulations
RTC Methodology
10
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments and concerns raised
2. Assign them to themes
3. Launch a theme and seek views
5. Internal/External Challenge 6. Star Chamber
8. Collective Agreement &
Reducing Regulation Committee
9.Second Implementation Star
Chamber
1. Identify regulations
1. Identify regulation
• First time Government has attempted to identify all live
regulation which was affecting business
• Departments were tasked with identifying all regulation
owned by them, and its cost to business
11
12
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments and concerns raised
2. Assign them to themes
3. Launch a theme and seek views
5. Internal/External Challenge 6. Star Chamber
8. Collective Agreement &
Reducing Regulation Committee
9. Second Implementation Star
Chamber
1. Identify regulations
13
Themes we have looked at…
• Retail
• Hospitality, Food and Drink
• Road Transportation
• Health and Safety
• Manufacturing
• Environment
• Equalities
• Children’s Services & Independent Schools
• Employment Related Law
• Rail
• Energy
• Housing & Construction
• Water
• Challenger Businesses
• Enforcement
• Medicines
• Maritime
• Aviation
• Company & Commercial Law
• Insolvency
• Pensions
• Civil Society
• Marine
• Sports & Recreation
• Business Services
• Healthy Living & Social Care
• Legal Services
• Planning Administration
• General Aviation
• Agriculture, Animal Health and Welfare,
Plant Health and Forestry
13
14
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments and concerns raised
2. Assign them to themes
3. Launch a theme and seek views
5. Internal/External Challenge 6. Star Chamber
8. Collective Agreement &
Reducing Regulation Committee
9. Second Implementation Star
Chamber
1. Identify regulations
16
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments and concerns raised
2. Assign them to themes
3. Launch a theme and seek views
5. Internal/External Challenge 6. Star Chamber
8. Collective Agreement &
Reducing Regulation Committee
9. Second Implementation Star
Chamber
1. Identify regulations
17
(May 5):
“We cannot sell
Christmas crackers to
under-16s because they
fall within the scope of the
legislation. Such common
and low-risk goods, which
we do not believe were
the intended focus of the
legislation, should be
exempted.”
(May 26):
“We wish to allow guests to
pre-order champagne for
special occasions (to be
waiting for them in a B&B
room) or a bottle of wine to
go with their dinner in the
self-catering
accommodation – this is a
service (we are not next
door to pubs or shops) and
unlikely to create profit. For
this we would have to go
through the same licensing
procedure and costs as a
pub.”
(May 23): “This regulation
requires that no smoking
signs be placed at each
entrance to smoke-free
premises. The ban on
smoking in enclosed
public spaces has now
been in force for a
number of years we see
little need for businesses
to continually replace
signage [..] The signs are
also unsightly as well as
unneeded”
(Nov 14): “Extend the qualifying period to 2 years – compulsory mediation like
you are introducing in other areas such as divorce”.
4. Analyse comments and concerns
18
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments and concerns raised
2. Assign them to themes
3. Launch a theme and seek views
5. Internal/External Challenge 6. Star Chamber
8. Collective Agreement &
Reducing Regulation Committee
9. Second Implementation Star
Chamber
1. Identify regulations
19
5. External input
woven in throughout
• Crowd-sourcing
• Sector champions
• Panels of ‘real’ businesses
• External ‘Challenge Panels’
• Twitter / social media
• LinkedIn group
• Alternatives to regulation
• Behaviour change
20
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments
and concerns raised
2. Assign them to
themes
3. Launch a theme
and seek views
5. Internal/External
Challenge 6. Star Chamber
8. Collective
Agreement &
Reducing Regulation
Committee
9. Second
Implementation Star
Chamber
1. Identify regulations
21
• Star Chamber meetings felt different
• officials (not Ministers) in front of Oliver Letwin & Matt Hancock
• the policy lead did the speaking (however junior)
• business presence (often)
Oliver Letwin – Minister for
Government Policy
Matthew Hancock– Minister for
Business and Energy
6. Star Chamber
22
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments
and concerns raised
2. Assign them to
themes
3. Launch a theme
and seek views
5. Internal/External
Challenge 6. Star Chamber
8. Collective
Agreement &
Reducing Regulation
Committee
9. Second
Implementation Star
Chamber
1. Identify regulations
23
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments
and concerns raised
2. Assign them to
themes
3. Launch a theme
and seek v iews
5. Internal/External
Challenge 6. Star Chamber
8. Collectiv e
Agreement &
Reducing Regulation
Committee
9.Second
Implementation Star
Chamber
1. Identify regulations
8. Collective Agreement & Reducing Regulation
Committee
Cabinet Sub-Committees
• Economic Affairs (Reducing Regulation) sub-
Committee
• Home Affairs Committee
• European Affairs Committee
24
Secretary of State for Business,
Innovation and Skills, Rt Hon Dr
Vince Cable MP
Deputy PM, Rt Hon Nick Clegg MP
Secretary of State for Foreign and
Commonwealth Affairs,
Rt Hon Philip Hammond MP
25
UNCLASSIFIED
7. Post Star Chamber
4. Analyse comments
and concerns raised
2. Assign them to
themes
3. Launch a theme
and seek v iews
5. Internal/External
Challenge 6. Star Chamber
8. Collectiv e
Agreement &
Reducing Regulation
Committee
9.Second
Implementation Star
Chamber
1. Identify regulations
• Company Law: Gave more businesses flexibility on auditing accounts, saving businesses
£300m / yr
• Environment: Introduced clearer statutory guidance to reduce uncertainty about
contaminated land to avoid costly, unnecessary, remediation operations and save
businesses £132m / yr
• Health & Safety: Announced that 100,000s of low risk businesses such as shops, offices
etc. would be removed from proactive H&S inspections (except where there has been an
incident or poor track record)
• Employment Law: Introduced Early Conciliation to avoid the cost and stress of an
Employment Tribunal for all and save businesses £24m per year
• Health & Safety: Legislated so that businesses are no longer automatically liable for an
accident in the work place that isn’t their fault
• Equality Act: employers no longer liable for staff harassment by a 3rd party
Key Reforms Delivered to Date
27
28 UNCLASSIFIED
Challenges & Lessons
28
“Well, if it can be thought, it can be done, a problem can be overcome”
• Virtually the whole statute book was a lot! More targeted next time?
• It is not just about the regulations but also how they are enforced and the guidance and advice that accompanies them
• Departments’ ability to push it – resources; Ministers; political priorities
• Parliamentary process – sheer volume of reform
• Seeing things through to completion
• Communicating the success – businesses still see new regulation coming in
• Crowd-sourcing – needs a feedback loop. And didn’t replace need for formal consultation on substantial changes
• Data protection
UNCLASSIFIED
29
External input helped drive the change
29
• Counter-cultural to many – surely key role of Whitehall to regulate?
• Lots of external input provided new ideas; new evidence; reality checks...
...and gave Ministers substance to challenge Depts’ defence of regulation.
• But combined with:
• Alignment with other incentives – the need to find ‘OUTs’ ; growth;
efficiency; Civil Service Reform, digital by default...
• Strong (and sustained) central and political momentum
• Pace - ambitious targets in tight timescales
• Supported by lean joint Cabinet Office/BIS team, partnering with Depts
UNCLASSIFIED
UNCLASSIFIED
33
Useful links
Better Regulation Executive website:
• https://www.gov.uk/government/policies/reducing-the-impact-of-regulation-on-business
Red Tape Challenge website:
• www.redtapechallenge.cabinetoffice.gov.uk/
Focus on Enforcement website:
• http://discuss.bis.gov.uk/focusonenforcement/
Statement of New Regulation
• https://www.gov.uk/government/organisations/department-for-business-innovation-skills/series/bis-statement-of-new-regulation
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