1. Better Regulation Executive Making regulation work for everyone Measuring admin burdens, UK outcomes and next steps Mark Hammond

2. Introduction Measurement and simplification planning exercises between May 2005 and Dec 2006 Simplification plans and measurement results published in December 2006 Plans published for 19 departments Over 500 simplification measures and over £2bn (3bn) of savings identified

3. Admin burden measurement: context Well developed better regulation agenda but no specific focus on admin burdens BRTF report Less is More stated what gets measured gets done Published at same time as Hampton report Separate but parallel and consistent exercises: –Tax and customs –Financial services –Rest of government

4. Key points about the Standard Cost Model Simple, pragmatic framework for measuring costs Indicative - not statistically representative –Means to an end: aim is reductions in burdens Provides consistent baseline for setting targets Rapidly growing international use, including EU and OECD, and effective SCM network

5. Main measurement exercise: context Politically driven timescales – one year from start to finish 16 departments involved - centrally led Limited information at start – number of regulations, populations, etc Business, charities and the voluntary sector covered

6. Main measurement exercise: approach Departments identified regulations summer 2005 Central procurement exercise - PwC appointed September 2005 Mobilisation and mapping (legal and process) September to November 2005 Fieldwork between October 2005 and April 2006 Departmental reports with measurement outcomes April to July 2006

7. A sense of scale… 20,000 Information Obligations measured Over 90% of baseline (by cost) measured by direct engagement with business Over 75% through engagement with small & medium sized enterprises Over 8,500 interviews and over 200 expert panels At peak over 700 PwC people, over 300 in departments and up to 23 in BRE team

8. Lessons learnt More time for preparatory work Better departmental buy-in from outset at top level More prioritisation and be realistic Strong project and resource planning Manage departments expectations of the extent of their involvement Allow time to sanity check numbers before they go anywhere Support of business stakeholders is essential

9. Business as usual costs Pressure from departments and business to identify BAU costs HMRC measurement excluded BAU costs in line with NL tax department Methodology developed aim to be: –Credible, pragmatic and as open as possible –Consistent across departments; –Approved by business stakeholders – independent panel to review outcomes Net costs agreed Enables focus on delivering visible outcomes

10. Measurement results Totals including tax/customs and financial services Admin costs: £31.1bn (46.7bn)Admin burdens: £19.8bn (29.7bn) Plus tax/customs and financial services Tax and customs: £5.1bn (7.7bn)Financial services: £855m (1.3bn) Admin burdens (excluding Business As Usual costs) £13.8bn (20.7bn) Administrative costs £25.2bn (37.8bn)

11. Burdens by department

12. Comparison of GDP shares

13. Origin of admin burden

14. DepartmentRegulationIO DescriptionAdmin Burden Communities and Local Government Town and Country Planning Act 1990 Application for planning permission£1,110 million Health and Safety Executive Management of Health & Safety at Work Regulations 1999Risk assessment£600 million Department of Trade and IndustryEmployment Rights Act 1996 Written statement of employment£586 million Department of Trade and Industry Consumer Protection Act 1987 Provision of safety information£443 million Health and Safety Executive Gas Safety (Installation and Use) Regulations 1998Gas safety checks£237 million Department of Health Medicines for Human Use (Marketing Authorisations Etc.) Regulations 1994 Authorisation for marketing of medicines£208 million Communities and Local GovernmentHousing Act 1985 Houses in multiple occupation£207 million Biggest information obligations

15. Type of information obligation

16. The next challenge… Measure new regulations Identify further simplification measures

17. Measuring new regulations - Overview Regulations introduced and simplification measures implemented between May 05 and May 07 Evidence reported using Impact Assessments Need to be pragmatic and proportionate

18. Distribution of administrative burden

19. Measurement approaches High cost / high profile / high irritants Use approaches developed by PwC including: –Interviews with business (face-to-face or telephone) –Expert Panels Low cost / low profile / low irritants Use Admin Burdens Calculator –Identify similar regulations / obligations as a basis for modelling

20. Guidance –Simplification Guidance & checklist for departments Training –Facilitated sessions for Better Regulation Units and economists –On-line training for policy officials etc. Tools –Admin Burdens Calculator –Admin Burdens Database –Spreadsheet How we are helping departments

21. Process Admin Burdens Database 2007 Admin Burden Total Admin Burdens Calculator Excel Spreadsheet Modelling IAs Admin Burdens Database Validation Admin Burdens Database Excel Spreadsheet Departmental reporting

22. Also cover reductions in policy costs and public sector burdens Revised simplifications plans will focus on three main areas: –Whether simplifications measures that have been implemented delivered planned reductions –Further quantification for simplification measures yet to be implemented –New simplifications measures to meet reduction targets Identify further simplification measures

23. Reductions identified in initial plans

24. Reductions identified against targets

25. Key simplification measures Companies Act reforms savings of almost £150 million. International Trade Single Window allows traders to lodge information with a single body to fulfil all import and export requirements Saving around £60 million a year. Health and Safety Executive (HSE) committing to savings of over £300 million through making compliance easier without compromising safety.

26. Planning reform Initiatives to deliver a simpler, faster and more efficient planning system will save £124 million. –Submit a single national planning application electronically –Judged against more consistent criteria –Increasing certainty for those using the system.

27. Retail enforcement pilots Establishing new ways of working between trading standards, environmental health, health and safety and fire authorities Resulting in up to 33 % fewer inspections for compliant businesses Scheme will be rolled out to 70 new local authorities from 2007.

28. Mark Hammond Better Regulation Executive, Cabinet Office 22 Whitehall London, SW1A 2WH Mark.Hammond@cabinet-office.x.gsi.gov.uk +44 20 7276 1745 Any questions?

29. Where you can find more information Portal: www.betterregulation.gov.uk BRE site: www.cabinetoffice.gov.uk/regulation International SCM Network site: www.administrative-burdens.com HMRC report: http://www.hmrc.gov.uk/news/admin- burdens.pdf