Latest trends in Enforcement and Inspection Reforms: Prosperity and Protection

Age of austerity - implications for regulation Can regulation support growth? UK Government approach Towards a model for Inspection Reform

UK GDP Growth UK austerity measures From peak to trough the UK economy shrank by 7.2%

Impact of Austerity Influence and feedback Regulation and advice Demand Regulated Information Policies and priority setting Education

Can regulation support growth?

Regulation and Growth ImpactBenefits for business 1. Reduce costs 1.1 Minimises transactional costs 1.2 Mitigates regulatory risks 1.3 Minimises reputational costs 2. Improve confidence and control 2.1 Provides day to day management control 2.2 Ensures recognition for investment in compliance 2.3 Enables confident future planning and investment 3. Realise wider economic benefits 3.1 Ensures a level playing field 3.2 Provides local community benefits to businesses and citizens 3.3 Contributes to shared outcomes at a national level

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

Rule making 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 Regulatory Delivery Reduction of unnecessary burdens on business Risk based, targeted, proportionate Change in culture – Better inspections – Consistent enforcement – Alternatives to enforcement – Measuring impact on compliance

Results Through one-in, One-out and One-in, Two-out, the Government has delivered combined net annual savings to business of 1.19 billion. 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 The Red Tape Challenge has identified over 3,000 regulations to scrap or improve. Once implemented, this will deliver annual savings of over £850 million to business.

The Regulatory Policy Cycle: respective roles of BRE, BRDO and RPC 1. Regulatory Policy 6. Evaluation 2. Problem Identification 3. Developing Options 4. Recommendation s to Ministers Making Whitehall machine work Owning the IA process Providing a forum for business engagement Engagement with Behavioural Insights Team Encouraging dept ownership Policy advice on delivery considerations Assessment of IAs, policy options Engagement with regulators & business Simplifying regulatory delivery & PA Feedback from business & regulators Landscape review approach PIRs EU and Ministerial engagement 2. Problem Identification Providing a forum for business engagement 5. Delivery

Sustainable improvement in delivering regulation Rules Frameworks Performance Management Accountability to business Culture/Competency Leadership Values

Primary Authority Sustainable improvement in delivering regulation Rules Frameworks Performance Management Accountability to business Culture/Competency Leadership Values Regulators’ Code Service standards Fees & charges Leadership skills Competency framework Professional development Core skills Business planning Strategic risk Performance Monitoring Business Reference Panel Better Business for All Priority Regulatory Outcomes Impacts & Outcomes Focus on Enforcement Data Sharing Risk Frameworks Growth Duty