Regulatory Reform in the United Kingdom – Prosperity with Protection

Philip PreeceBetter Regulation Delivery Office

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Better Regulation Delivery Office• Expert unit in the UK Government Department for Business, Innovation and Skills

• Responsible for delivering the Government’s commitment to cut red tape, improve public protection and boost UK economy through better regulatory enforcement

•Transforming the business experience of regulation at the front line

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We bring national and local regulators and policy makers together to create tools that cut red tape and provide protection

BRDO: Who we work with

We work with businesses to reduce burdens and improve regulation for them

We advise Government on delivering regulation and inspections

BRDO

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Regulatory Reform in the UK

1947

• Harold Wilson – President of the Board of Trade and later Prime Minister announces “bonfire of controls”

1980s

• Deregulation units set up in government departments• Compliance Cost Assessments• Deregulation White Papers

1990s

• Bonfire of red tape promised by Michael Heseltine• Deregulation Taskforce 1994- 1997 renamed Better Regulation Taskforce 1997• Regulatory Impact Assessments

2000s

• Better Regulation Commission and later Better Regulation Executive• Risk and Regulatory Advisory Council 2008 – 2009• Local Better Regulation Office 2008 – 2012• Regulatory Policy Committee 2009 -

2010s

• Red Tape Challenge and Focus on Enforcement• Better Regulation Delivery Office 2012

• Chancellor commissioned Hampton Review 2005, fundamental review of inspections and enforcement

• Identified burdens to business and inefficiencies of the regulatory system

• Series of key principles:• Risk• Targeting inspections• Reducing data requirements• Improving advice to businesses• Accountability to business

Regulatory delivery as a political imperative

Regulatory delivery is about the way in which inspections, advice, notices and prosecution are carried out and the attitudes, competency and actions of inspectors.

The regulatory policy agenda The law

• Reduction of unnecessary burdens on business

• Change in policy making culture - regulation only when necessary– One in one out– Red Tape Challenge– Alternatives to

regulation– Regulatory impact

assessment

Enforcement of the law• Reduction of unnecessary

burdens on business• Risk based, targeted,

proportionate• Change in culture

– Better inspections– Consistent enforcement– Alternatives to

regulation– Post implementation

review– Competence

• Effective and efficient use of state resources• Target resources where they will have the most

impact – on the criminal, the careless, the incompetent

• Reduce burdens on compliant businesses• Transparency for business – it is clear how good risk

management will influence how inspection is conducted

Why use risk-based approaches?

Higher Risk

Medium

Lower risk

Profile of businesses

61% of businesses: Local councils do not understand businesses well enough to regulate

UK Businesses on Regulation

LBRO/NAO Business perspectives survey 2012

1 in 7 businesses: regulation is the most challenging aspect of running a business

80% businesses: non-compliance would affect relationships with our customers

92% felt that providing advice was a key part of their role

UK Inspectors on Regulation

Officer launch survey, LLEP, October 2011

99% felt that a good relationship with business was important or of some importance

72% felt that they have a role to play in supporting economic growth

Key messages for prosperity and protection

• ‘Good’ regulation can support growth, as much as ‘poor’ regulation hinders it

• How regulation is delivered (enforcement) matters• Key aspects of delivery include

–Right level regulation-local/regional/national–Hearing business as the ‘customer’ of regulation

Good regulation is:...choosing the right methods to move from

risk to outcomes

Risks OutcomesInterventions

‘Of course we need proper standards, for example in areas like fire safety and food safety. So where regulation is well designed and proportionate, it should stay’

David Cameron UK Prime Minister

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Better Regulation Delivery Office: overseas • Jointly hosted the first international Inspection Reform conference in 2012 with IFC/ WBG, OECD and DfID with 35 participating countries

• Working with the UK Aid iFUSE programme to support developing economies improve the business environment

– UK Government current practitioners

– Technical assistance on investment climate issues

– In country support and inward learning visits

– Priority countries in Africa, Central Asia, South East Asia

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BRDO: Work in Sub-Saharan Africa •Mozambique: Technical advice to “single inspectorate” INAE on building institutional capacity for effective inspection•Kenya: Supporting IFC local authority inspection reform programme, covering public private dialogue, risk based approaches and inspection checklists•Zambia: Hosted study tour to UK from Zambian government on regulatory impact assessment in August 2013. Completed a follow up visit in March this year which is the first of a three part programme. •Liberia: Part of IFC inspection reform programme. Advice, training and support on allocating regulatory resources according to risk, institutional structures and training front line officers•Cameroon, Cote d’Ivoire, Kenya, Liberia, Mozambique, Nigeria: delegates attended BRDO Inspection Reform Conference 2012 in London•East African Reformers Network: BRDO spoke at conference 2010 and 2012 on local government regulatory reform

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