Better Regulation

1. Better Regulation DTI/BRE Conference on the Evaluation of Regulation 24 November 2006 Colin Church, Cabinet Office Better Regulation Executive

2. Introduction Why am I here to talk to you today? Why should you care about better regulation What progress has been made? What are the priorities for the coming year?

3. Fundamental principles Regulation brings important benefits – Government makes no apology for necessary protections BUT it must be light touch, targeted and focused on achieving objectives Government’s programme of regulatory reform is one of the most radical in the world Not about removing safeguards; streamlining bureaucracy to drive up productivity Underpins a global, competitive economy capable of sustainable growth Working across whole of government to achieve fundamental culture change in the regulatory environment

4. Better Regulation: Developments In Budget 2005, the Government announced acceptance of two key reports Better Regulation Task Force – “Less Is More” Hampton Review on Inspection and Enforcement May 2005 – Better Regulation Executive established January 2006 – Better Regulation Commission established November 2006 : Legislative and Regulatory Reform Act Government commitment to reduce the cost of regulation - year on year reductions in administrative (or ‘red tape’) burdens on business Several Departments have already set a target of 25% net reduction by 2010 European Commission also proposed cutting administrative burden for companies by 25% by 2012 Major rationalisation of regulatory landscape in private and public sectors

5. Progress so far Publication of Simplification Plans across 19 Departments / Agencies over next few weeks - all committing themselves to reduce burdens Largest package of deregulation measures any country anywhere has ever made Progress towards risk-based inspection with a new emphasis on guidance rather than box ticking HSE already published - identified potential savings of more than £300 million. Measures include: significant reductions in the cost of compliance reducing the cost of unnecessary paperwork a more proportionate approach to risk management and; a greater focus on health and safety advice and guidance

6. The benefits of this agenda Programme represents collaborative partnership working –Government has listened to cries to cut red tape Data on the costs of administrative burdens will be available as a tool for future evidence-based debate Savings in time, money and hassle - enabling business to be more efficient and competitive at home and abroad Improvements in information technology being used to attack the paperwork mountain, with applications, registrations etc being done online Streamlining the collection and sharing of data more efficiently – removing time-consuming and frustrating duplication

7. Looking forward Priority for 2007 – all about delivery Roll-out of simplification proposals to cut costs Building capacity of departments and regulators – changing how government regulates Ongoing scrutiny of upcoming regulations Using powers in Legislative and Regulatory Reform Act 2006 Rationalisation of inspection and enforcement arrangements for businesses and the public sector Implementing recommendations in independent reports – BRC Risk and Regulation, Macrory and Davidson Reviews

8. Strengthening the evidence base Data issues Little evidence on net costs of regulation in UK Evidence base of importance of regulation on economic activity and growth is weak and mixed Empirical studies use indicators, eg Studies using OECD indicators of product market regulation show such regulation can slow catch-up World Bank analysis shows regulation of business is important determinant of growth European Commission estimates a 25% cut in admin burdens could increase EU GDP by 1.5% Promising area for future research