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Summary of
Simplification
Plans 2009
Contents (page 1 of 2)

Foreword by the Prime Minister.......................................................................
Contents (page 2 of 2)

SectIon 3 Wider Simplifications (outside of ABRP)........................ 40                      ...
Foreword by the Prime Minister

Creating and maintaining          We are on track to meet our
a world-class business      ...
Introduction by the Secretary of State

Following the recent global         year - saving them time, money      The public...
SECTION 1

Summary


Chapter 1 Executive Summary
Chapter 2 Better Regulation – what next?




                            ...
Chapter 1

Executive Summary

The Administrative Burden                         environment, which is fair and     Since t...
What do businesses                    The External Validation
Defra                                                       ...
What is this report                                • influencing Europe and other
                                        ...
Chapter 2

Better Regulation – what next?

The Government has a                 has reviewed the regulations            co...
CLG                                                                  HSE
Electronic Communication
of Building Control Docu...
DfT
Dangerous Goods – Instructions in Writing
" If the information is there, in the driver's
possession, and it is legible...
SECTION 2

Administrative Burden
Reduction Programme

Chapter 1 Year 4: Progress so far
Chapter 2 The Third Sector
Chapter...
Chapter 1

Year 4: Progress so far

Delivery in 2009 against the                       Delivery overview
net 25% administr...
In December 2009, the                With this in mind, this year we
Programme is on track, and is        have derived a r...
• By May 2009 Departments
CLG                                                                     had delivered an estimat...
The tables below illustrate the top simplification measures delivered (by £million value). The first details the new
measu...
MeASURe                   PRActIcAL cHAnGeS to BUSIneSSeS                                         totAL AnnUAL GRoSS
     ...
BIS – Dispute Resolution
Changes recommended by The Dispute Resolution Review were implemented via the
Employment Act 2008...
FIGURe 3: Top Simplification Measures (by £ million value) since beginning of Programme (figure continues on the next page...
SIMPLIFIcAtIon         DeScRIPtIon oF SAvInGS                                               AnnUAL GRoSS SAvInGS
MeASUReS ...
HSE
Risk Assessment
"When I talk about what a risk assessment is,
I use a printed copy of the HSE's guide and
take people ...
Administrative burden              • The Department for Business,
                                     Innovation and Skil...
FIGURe 4: Progress by individual Departments

                                                                            ...
The chart below shows that,           FIGURe 5: Admin Burden Reduction Programme – Net trajectory May 2005 - May 2010.
fol...
Ensuring businesses, third and public sectors
are feeling the benefits on the ground
External Validation Panel



  Eve Sa...
In 2008, the EVP chose to               In 2009, the Panel took a slightly
   Defra                                       ...
FIGURe 6: Overview of validation

 totAL GRoSS ADMInIStRAtIve BURDen ReDUctIonS     £1.985bn
 Validated by EVP and BRE/Dep...
CLG
Planning Portal
"Switching to electronic submission has allowed us                   HMT
to replace a slow, laborious ...
HMT
Paperless Settlement
" It could take up to ten days or more to
settle a UK fund transaction," says Andy.
"We estimate ...
Chapter 2

The Third Sector


2009 achievements                        The new Charitable Incorporated
                   ...
Making Employment                     The Department for Business,
23,000 Small Charities Benefit                         ...
Wider Simplification
   BIS                                                                                               ...
DCSF
Proportionate Monitoring of Grants
"We have to answer a number of key questions
about how we run the project, what we...
Chapter 3

Helping Small Businesses

Small and medium sized               strategy has embedded the
enterprises (SMEs) are...
The Government has simplified       • private companies no longer
DfT                                                     ...
BIS                                                                  2. Reducing Administrative Burden
   Company Law     ...
DCSF                                                                        BIS
Removal of requirement                    ...
BIS
The National Measurement Office
Self-verification of equipment                                      BIS
"Like all resp...
SECTION 3

Wider Simplifications
(outside of Admin Burden
Reduction Programme)
Chapter 1 The Public Sector
Chapter 2 Simpl...
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  1. 1. Summary of Simplification Plans 2009
  2. 2. Contents (page 1 of 2) Foreword by the Prime Minister.................................................................... 4 chapter 2 ................................................................................................................ 31 Introduction by the Secretary of State ........................................................ 5 The Third Sector .............................................................................................. 31 2009 achievements ...................................................................................... 31 SectIon 1 Summary .................................................................................... 6 Streamlined business practices ............................................................. 31 chapter 1 .................................................................................................................. 7 Making life simpler for small charities ............................................... 31 Executive Summary .......................................................................................... 7 Making employment law easier .............................................................. 32 What do businesses need to know? ........................................................ 8 Wider Simplification........................................................................................ 33 What is this report about?........................................................................... 9 Reducing funding & monitoring burdens ............................................ 33 chapter 2 ................................................................................................................ 10 Better Regulation – what next? .................................................................. 10 chapter 3 ................................................................................................................ 35 Helping Small Businesses ........................................................................... 35 SectIon 2 Administrative Burden Reduction Programme ............13 Examples of Departmental think small first approaches ............ 35 chapter 1 ................................................................................................................ 14 Year 4: Progress so far .................................................................................. 14 Delivery overview ......................................................................................... 14 Administrative burden reductions: Progress by individual departments and agencies ......................... 23 Contents 2
  3. 3. Contents (page 2 of 2) SectIon 3 Wider Simplifications (outside of ABRP)........................ 40 SectIon 4 Annexes ................................................................................... 57 chapter 1 ................................................................................................................ 41 Annex A ................................................................................................................... 58 The public sector ............................................................................................. 41 Cautious Predictions – risks to delivery by May 2010 ........................ 58 Reducing bureaucracy in the public sector........................................ 41 Annex B ................................................................................................................... 63 2009 achievements in reducing bureaucracy External Validation Panel May 2005 – May 2009 ................................. 63 in the public sector ...................................................................................... 41 Annex c ................................................................................................................... 76 Engaging with the front line and reducing The Measurement Process: The International Standard Cost the stock of unnecessary bureaucracy................................................ 45 Model Methodology......................................................................................... 76 Wider work on improving public sector efficiency .......................... 46 Stage 1 Measurement ................................................................................ 76 chapter 2 ................................................................................................................ 47 Stage 2 Adjusting for business as usual.............................................. 78 Simplifications at the European level ...................................................... 47 Annex D ................................................................................................................... 79 UK engagement with the EU .................................................................... 48 Baseline Adjustments .................................................................................... 79 Improvements to incoming European legislation ............................ 51 2009 Baseline adjustments ...................................................................... 80 chapter 3 ................................................................................................................ 52 Reducing policy burdens and irritants .................................................... 52 Policy burdens: Process by individual Department and Agency........................................................ 53 Reducing Non-Monetary Irritants.......................................................... 55 Contents 3
  4. 4. Foreword by the Prime Minister Creating and maintaining We are on track to meet our a world-class business promise of a net 25% decrease environment is essential to in the administrative burdens economic growth. Building on business with plans in place a robust and flexible to deliver £3.3 billion in annual regulatory framework is savings to businesses by May central to this because it 2010, and I am pleased that the encourages investment Government was able to make a and removes barriers. further commitment this year to cut the annual costs of existing The UK already has the best regulation by a further £6.5 billion business environment in Europe, over the next five years. and ranks fifth in the world, Gordon Brown according to the World Bank. The UK leads the way on Prime Minister We have made significant regulatory reform, and I am progress this year pushing determined that we will continue forward our ambitious to deliver our ambitious Better regulatory reform agenda and Regulation Agenda, to make increasing the transparency sure that regulation works and accountability in the way better for everyone. the Government operates. Foreword by the Prime Minister 4
  5. 5. Introduction by the Secretary of State Following the recent global year - saving them time, money The publication of our first financial crisis and as global and resources to direct towards Forward Regulatory Programme competition increases, it is achieving their ambitions for and creation of a new body, the more important than ever that the future. Regulatory Policy Committee the Government continues to shows our commitment to We are on target to cut the ensure a regulatory framework improve transparency, administrative burden of existing that is fair, appropriate and accountability and external regulation by 25% by May 2010. reflects the demands of a 21st scrutiny. But we want to go further and our century economy. new target of £6.5 billion will This report sets out what the The Government is focused on address both the administrative Government has achieved so striking the right balance and wider costs of regulation. far this year and since 2005, between guaranteeing essential and we will continue to do We are working hard across protections and rights are upheld everything we can to foster Peter Mandelson Government to establish and recognising the impact of growth, innovation and fairness Secretary of State for Business, regulation that is targeted and excessive regulations on through better regulation. Innovation and Skills proportionate and to help businesses and our third sector. organisations get the simple, Our ambitious Better Regulation clear advice and support they Agenda is already delivering real need to implement measures benefits. The programme to effectively. reduce administrative burdens is achieving billions of net savings to individual organisations every Introduction by the Secretary of State 5
  6. 6. SECTION 1 Summary Chapter 1 Executive Summary Chapter 2 Better Regulation – what next? 6
  7. 7. Chapter 1 Executive Summary The Administrative Burden environment, which is fair and Since the beginning of the Public sector organisations Reduction Programme – proportionate and responds to a Administrative Burden Reduction also face administrative saving businesses time and rapidly changing global economy. Programme in 2005, the burdens. In 2009 there has money by reducing red tape. Government has implemented been real progress on reducing The Administrative Burden 280 separate simplification the number of information Effective and evidence-based Reduction Programme, part measures to reduce the time requests and on reducing the regulations can play a critical role of the UK’s Regulatory Reform and money businesses, charities burden of information requests in correcting market failures, and Agenda, identifies, simplifies and the public sector spend on from central Government to provide essential protections for and sometimes removes the administration. public sector organisations. the general public. administrative burden placed These reductions are a positive on organisations to demonstrate Her Majesty’s Revenue and The Better Regulation Agenda and tangible step in reducing they are complying with Customs (HMRC) is also encourages Government to cut bureaucracy for the public regulations. committed to reducing the unnecessary bureaucracy and sector front line. administrative burden of tax out of date regulations – making The Government is committed regulation and has been set life simpler for businesses, third to reducing the administrative separate reduction targets by sector organisations and the burden faced by business and the Chancellor. Details of this public sector front line. the third sector by 25% by May programme can be found on 2010, and expects to deliver In the current economic climate it the HMRC website1. approximately £3.3 billion net is particularly important to make annual savings. By December sure that Government creates a 2009 Government has delivered world-leading regulatory £2.9 billion net annual savings towards this target. 1. http://www.hmrc.gov.uk/budget2009/new-relationship-605.pdf SECTION 1 | Chapter 1: Executive Summary 7
  8. 8. What do businesses The External Validation Defra Panel was set up to test that need to know? Environmental Permitting Programme simplification measures in the Government has now made 280 Administrative Burden Reduction " When you run your own business and you're simplification measures with Programme were effectively hands-on all the time, sometimes you look 40 additional measures which communicated to businesses and have started to deliver savings at the volume of paperwork needed and it's in the last 12 months. Together were felt on the ground. This year a headache. the External Validation Panel has these measures are delivering to again scrutinised the business the potential to realise "Before the new system, our licence application an estimated £2.9 billion net Government’s delivery. fee would have been around £10,000. But the annual savings. In Summer 2009 the External new permit costs us much less, around £1,300." Validation Panel met again to look In 2008 the Government at the delivery of new measures. carl Brittain, owner of Mr Rubble Skip Hire established the External By May 2009, 77.5% of the Validation Panel. This is an Programme’s total gross savings Waste Management Licensing and Pollution Prevention independent panel including delivery was validated. and Control systems have been consolidated from 41 sets representatives from the of regulations into just one, a third of the length of the The External Validation Panel will Confederation of British Industry, original legislation. meet again in 2010 to review and the Institute of Directors, the One permit has replaced several types of permit under the British Chambers of Commerce, validate final delivery across the old system, meaning that it’s easier for businesses to obtain the Federation of Small Programme. the right one. Businesses and the Trades Union Congress. This means that getting an environmental waste management licence is now a very easy process and will save business up to £8.9 million by December 09. SECTION 1 | Chapter 1: Executive Summary 8
  9. 9. What is this report • influencing Europe and other international organisations about? to promote a culture of better This document provides a regulation, ensuring that the summary of the Government’s UK economy will benefit; and progress towards delivering 25% net reduction in administrative • minimising the policy burdens burdens since the beginning of and key irritants faced by the Programme in May 2005, businesses. To date, with a particular focus on £1.19 billion gross annual progress over the past year. policy savings have been made. This summary also reports on You can find more information the Government’s progress in on individual Departments’ delivering wider simplifications. achievements in their It describes the Government’s Simplification Plans, which are achievements in: published on the BIS website2. • reducing the number of information requests from central Government to public sector frontline workers by 30%. By December 2009 a 30.8% reduction of information requests has been delivered, with further delivery expected by May 2010; 2. http://www.berr.gov.uk/whatwedo/bre/policy/simplifying-existing-regulation/simplification-plans/page44063.html SECTION 1 | Chapter 1: Executive Summary 9
  10. 10. Chapter 2 Better Regulation – what next? The Government has a has reviewed the regulations comprehensive forward The Government has also set up wide-ranging regulatory it is introducing which would indication of existing and possible a new independent Regulatory reform programme. The increase burdens on business future regulatory proposals to Policy Committee whose role is current programme began during the recession and allow for improved medium-term to advise the Government on in 2005. In April 2009 the recovery. Twenty six planned business planning. whether it is doing all it can to Government set out the next regulations will now not be accurately assess the costs and The Government is also working steps to drive forward the introduced before April 2011, benefits of regulation. Building closely with European Union Better Regulation Agenda. deferring costs to businesses of on the work of Philip Hampton, partners to further embed the EU £3.5 billion, nearly one third of the this body will also advise the The recent economic climate has Better Regulation Agenda and to new regulation that was planned Government on whether underpinned the importance of ensure the current pressures on for introduction over the next 18 regulators are appropriately the Government’s focus on business are taken into account months. This includes delaying risk-based in their work. delivering real help for business. when new European regulation is giving employees of small and In April this year the Government being considered. medium sized enterprises (SMEs) therefore committed to a further the right to request paid time to Looking forward, the Government programme of better regulation train until 2011, to help small will adopt new simplification measures tailored to the business through the recovery, targets for 2010 to 2015 which will exceptional economic and delaying new building address all regulatory costs on circumstances. regulations until 2013. business including a further Despite the need for new £1.5 billion net annual savings In October 2009, the Government regulation in some areas (such target for administrative costs published, for the first time, a as climate change, and financial and a £5 billion policy cost Forward Regulatory Programme. services in response to the reduction target. This provides business with a banking crisis), the Government SECTION 1 | Chapter 2: Better Regulation – what next? 10
  11. 11. CLG HSE Electronic Communication of Building Control Documents Removal of outdated requirements HSE has removed eight forms which businesses previously had "The ability to send and receive key building to fill out to notify the Government before employing staff in their control documents by electronic means is premises. These requirements had little current relevance as greatly welcomed. there are other means of obtaining this information. “It saves time and effort, not just in terms of printing and HSE’s public consultation in Autumn 2008 showed strong support postage but also because the statutory time limit starts virtually for removing the requirements. This included support from local instantaneously, whereas for posting you need to allow two days. authorities. The amending legislation came into effect in April It therefore means that our business can run more efficiently and 2009, reducing the administrative burden on businesses by cost-effectively and this benefits our customers too.” £21 million annually. David Mccullogh, tPS Most building control documents and information transfers can now take place electronically. This substantially reduces the amount of time and cost of acquiring, completing, submitting and processing hard-copy documents. This will deliver an anticipated annual saving of £38 million by May 2010. SECTION 1 | Chapter 2: Better Regulation – what next? 11
  12. 12. DfT Dangerous Goods – Instructions in Writing " If the information is there, in the driver's possession, and it is legible, that is fine. This is an example of the broader attitude that industry welcomes, whereby the mildly creative approach is accepted, in the UK at least." Dr Andy Holton, Product Stewardship Manager, exxonMobil chemical Ltd DfT removed the requirement for companies involved in the transport of dangerous goods to produce instructions on safe handling of products in the languages of all the countries through which the shipment travels. This saves businesses an estimated £200,000 each year. Dr Andy Holton praised the effective cooperation with the police and the pragmatic approach to the format of instructions in writing. SECTION 1 | Chapter 2: Better Regulation – what next? 12
  13. 13. SECTION 2 Administrative Burden Reduction Programme Chapter 1 Year 4: Progress so far Chapter 2 The Third Sector Chapter 3 Helping Small Businesses 13
  14. 14. Chapter 1 Year 4: Progress so far Delivery in 2009 against the Delivery overview net 25% administrative burden reduction for the private and The following table shows the total administrative burden reduction delivery third sectors. to date across Government and the planned delivery predicted by May 2010. The Programme continues to FIGURe 1: Progress in Reducing Administrative Burdens make real world improvements. By December 2009 the £m annual admin DeLIveRy PLAnneD burden savings to DAte (£M) DeLIveRy Government has put in place 280 simplification measures, Baseline as at May 2006 May 2007 May 2008 Dec 2008 May 2009 Dec 2009 May 2010 delivering an estimated Dec 2009 £2.9 billion in net annual savings. £13,141.0 Net Reductions3 £348 £674 £1,665 £1,950 £2,378 £2,927 £3,290 The Government is planning to deliver total net annual savings % Reduction 2.65% 5.13% 12.67% 14.84% 18.09% 22.27% 25.04% of around £3.3 billion by May 2010 and is therefore on track to deliver its 2005 commitment to reduce the administrative burden faced by business by 25%. 3. The figures from May 2006 to December 2008 have been revised to reflect 2009 baseline adjustments. SECTION 2 | Chapter 1: Year 4: Progress so far 14
  15. 15. In December 2009, the With this in mind, this year we Programme is on track, and is have derived a risk-based Forestry Commission now delivering £2.9 billion in net analysis of the programme, which e-Business for Forestry annual savings, meeting the sets out a cautious estimate of predicted December 2008 final delivery. We currently " It's virtually a revolutionary change in the way delivery forecast. This shows expect, on the cautious case, we handle all the adminstration of our buying. good recent progress following that the programme would some under-delivery in May 2009 deliver around £3.2 billion in Electronic trading has saved us a full-time post; against Departments’ December annual savings by May 2010. it is faster, more efficient, and makes better 2008 forecasts. This cautious estimate takes into data available, with no need for checking." account potential delays in the The cross-programme forward neil cowan, Howie Forest Products take-up of some measures. forecast for delivery to May 2010 As a result of recent economic E-Business for Forestry has moved paperwork required by shows that the Programme will conditions, business has the Forestry Commission online. This has brought savings deliver £3.3 billion net annual understandably been slower than of over £1.4 million to its customers. savings. However, there is very anticipated in taking up some of little contingency across the the available opportunities to Programme. It is important that reduce administrative costs. In all Departments manage their this cautious-case analysis we individual delivery programmes anticipate that the programme very carefully over the next five would deliver £3.2 billion by May months to ensure delivery of the 2010 and the full £3.3 billion in net final target in May 2010. annual savings by October 2010. SECTION 2 | Chapter 1: Year 4: Progress so far 15
  16. 16. • By May 2009 Departments CLG had delivered an estimated £2.38 billion net annual savings Greater Flexibility for through the Administrative Planning Permissions Burden Reduction Programme. Two new measures will provide a greater degree of flexibility • The External Validation and reduce the need for completely new applications for Panel has validated 77.5% planning permission. of gross savings reported by Departments to May 2009. A simplified planning application procedure at a reduced fee will allow property developers to seek an extension to the time limits • Between May and December for implementing an existing planning permission. Businesses 2009, Departments have made will also be able to apply to make non-material changes to an further progress. They have existing permission through a simple application procedure with delivered a further £549 a quick turnaround time. million net annual savings to business. In addition to the £18.6 million savings for businesses, there will be a reduction in workload for Local Planning Authorities, as these • Savings delivered between measures will reduce the numbers of completely new applications May and December 2009 will for planning permission. be validated by the External Validation Panel in 2010. SECTION 2 | Chapter 1: Year 4: Progress so far 16
  17. 17. The tables below illustrate the top simplification measures delivered (by £million value). The first details the new measures implemented in 2009, the second covers the top measures since the beginning of the programme. FIGURe 2: Top New Simplification Measures delivering savings in 2009 (figure continues on the next page) MeASURe PRActIcAL cHAnGeS to BUSIneSSeS totAL AnnUAL GRoSS ADMInIStRAtIve SAvInGS AS At DeceMBeR 2009 BIS Introduction of a general duty not to mislead consumers. £309m Business to consumer Establishment of a single set of rules against unfair sales advertising and and marketing practices directed at consumers. marketing rules: Transposition of the “this has been a very positive experience for us – the new Unfair Commercial regulations freed us up and gave us a genuine opportunity Practices Directive to explore new approaches.” Home Retail Group (Competition Policy (Not yet validated by External Validation Panel) and Consumer Law) BIS A key irritant for businesses. Employees and employers have now £115m Dispute Resolution greater flexibility to undertake early resolution by dealing with (Employment Law) workplace discipline and grievance issues in a way which suits them best. They can now follow the Acas Code of Practice, which sets out the principles that should be followed to address disputes. (Validated by External Validation Panel) HMt Lifts the previous requirement for paper settlement and transfer of £77m Better regulation title for fund managers, stockbrokers, financial advisers and other measures for the asset intermediaries by allowing electronic settlement. management sector (Not yet validated by External Validation Panel) (Paperless Settlement) DH Reduced transportation of paper prescriptions from prescriber £37.9m Electronic prescription to dispenser as well as to agent for reimbursement. service Reduced information having to be rekeyed by the dispenser and reimbursement agent. (Not yet validated by External Validation Panel) HSe Guidance available to businesses to decide when to label loads £32.5m Manual handling to avoid manual handling injuries to workers. operations regulations (Validated by External Validation Panel) SECTION 2 | Chapter 1: Year 4: Progress so far 17
  18. 18. MeASURe PRActIcAL cHAnGeS to BUSIneSSeS totAL AnnUAL GRoSS ADMInIStRAtIve SAvInGS AS At DeceMBeR 2009 BIS Allows companies greater flexibility in keeping a register £30.5m Other Companies Act of directors and members. Measures (Company (Not yet validated by External Validation Panel) Law and Accounting) HSe The electronic template for recording risk assessments saves £27m Electronic Risk business time and encourages compliance with the requirement. Assessment Template (Not yet validated by External Validation Panel) HSe By combining the need for a written policy statement and to record £26.5m The Written Health and a risk assessment the measurement has reduced duplicated Safety Policy Statement paperwork for businesses. (Not yet validated by External Validation Panel) MoJ These measures have been delivered following the introduction £26.1m Legal Aid- Various of the Civil Unified Contract 2007 and the Unified Contract Provisions under (Crime) 2008. Reduced burdens include improving systems such the Civil and as replacing paper based systems with on-line systems and Crimes Contract improving guidance. (Not yet validated by External Validation Panel) HSe Removal of requirements on businesses to fill out a form to notify £21m Forms project HSE or their local authority before employing staff in their premises and keeping registers. (Validated by External Validation Panel) SECTION 2 | Chapter 1: Year 4: Progress so far 18
  19. 19. BIS – Dispute Resolution Changes recommended by The Dispute Resolution Review were implemented via the Employment Act 2008 and the new procedures came into force in April 2009. The new framework for resolving employment disputes in Great Britain emphasises the importance of the early resolution of workplace matters in the workplace. This was a key irritant for businesses and as a result of these changes, employees and employers have greater flexibility to deal with workplace discipline and grievance issues in a way which suits them best and which saves them £115 million annually. The new Acas helpline and pre-claim conciliation services were also launched in April 2009 and are projected to deliver a total of £14 million savings, £6 million of which has been delivered to date. HSE Manual Handling Operations "Additional clarity of best practice and regulation that is readily and easily accessible through electronic/internet access can only be a good thing and therefore a supportive tool to supply chain handlers promoting best practice with suppliers/manufacturers/ importers of goods." Stuart Rainbow, chairman, Parcel carriers Safety Association Lack of clarity surrounding when it was necessary to give workers guidance on the weight of every load they had to carry was causing an estimated £150 million cost to business. To help businesses reduce unnecessary costs whilst continuing to protect their workers, HSE produced additional guidance on labelling loads in May 2008. Ninety-one percent of respondents who had read the guidance stated in an online questionnaire that the guidance helped them understand when a load needed labelling. Respondents expected to save between £262 and £1,314 annually from reduced labelling, which translates to £32.5 million savings across the board. SECTION 2 | Chapter 1: Year 4: Progress so far 19
  20. 20. FIGURe 3: Top Simplification Measures (by £ million value) since beginning of Programme (figure continues on the next page) SIMPLIFIcAtIon DeScRIPtIon oF SAvInGS AnnUAL GRoSS SAvInGS MeASUReS At DeceMBeR 2009 BIS The Employment Law Guidance Programme reduces the £418m Employment Guidance administrative burdens imposed by employment law. The Guidance Programme has produced free-to-use and legally-compliant online tools, pro-forma letters and agreement forms, accessible through www.businesslink.gov.uk (£418m validated by the External Validation Panel as at May 2008) BIS Provides a simpler legal framework, to protect consumers from £309m Business to consumer unfair practices, with a more level playing field for business. advertising and (Not yet validated by External Validation Panel) marketing rules: Transposition of the Unfair Commercial Practices Directive HSe Easy to follow examples of risk assessment for 34 lower risk £235m Example Risk businesses including convenience stores, dry cleaners and Assessments hairdressing salons. (£163.3m validated by External Validation Panel as at May 2008) cLG Reducing the number of licences required by landlords for low risk £207m Repeal of part XI of multiple occupancy households (partially offset by burden of £87m Housing Act 1985 from new licensing regime). (£207m validated by the External Validation Panel as at May 2008) BIS 1.2m companies can now send information including annual £182m Electronic reports to shareholders by email, rather than hard copy. communication (£76m validated by External Validation Panel as at May 2008) with shareholders DcMS This Act reformed the alcohol and entertainment licensing laws £181.1m Licensing Act 2003 in Britain into a single piece of legislation. (£181.1m validated by the External Validation Panel as at May 2008) SECTION 2 | Chapter 1: Year 4: Progress so far 20
  21. 21. SIMPLIFIcAtIon DeScRIPtIon oF SAvInGS AnnUAL GRoSS SAvInGS MeASUReS At DeceMBeR 2009 cLG 1.2 million pieces of electrical work a year are now certified by £136m Competent Persons ‘competent persons’, rather than having to go through Building Scheme Control inspection, saving around £110 per check. (£132m Validated by External Validation Panel as at May 2008) BIS Replacement of the complex Weights and Measures (Packaged £129m (former DIUS) Goods) Regulations 1986 to provide a more consistent, certain, Weights and Measures accessible and comprehensive law. (£129m validated by External Validation Panel as at May 2008) BIS Businesses no longer need to comply with statutory instruments £115m Dispute Resolution as the Employment Act 2008 allows companies to follow the Acas code of practice. This code sets out the principles to follow when addressing disputes. (£115m validated by External Validation Panel as at May 2009) DH Pharmaceutical companies can now self-certify minor changes to £104.9m Better Regulation of patient information on over-the-counter medicines, saving them Medicines Initiative time and money whilst allowing the MHRA to concentrate on (BROMI) Phase 1 scrutinising complex changes. (£104.9m validated by External Validation Panel as at May 2008) SECTION 2 | Chapter 1: Year 4: Progress so far 21
  22. 22. HSE Risk Assessment "When I talk about what a risk assessment is, I use a printed copy of the HSE's guide and take people through it to establish good practice. “The language is right because it’s everyday basic language. And the presentation is very good. So they can go through it BIS and do their own assessment properly. For small, voluntary organisations, that’s really important. Employment Guidance Government has transformed the guidance that it provides on “One group even wrote to us recently to thank us for making Employment Law. Guidance is now simple, easy to follow and the process so much easier.” allows employers to take on new employees with confidence. eamon McGraph, community Development Manager, The guidance focuses on particular areas of Employment Law Age concern norfolk which businesses found the most burdensome or complex. The Day centres play a valuable role in the lives of many older people guidance available at Business Link (www.businesslink.gov.uk/ but like any workplace they carry certain health and safety risks. employingpeople) covers all aspects of employers’ obligations, and includes free access to interactive tools and documents that According to Eamon McGrath, the problem of assessing those are quick and easy to use. risks is now much easier, thanks to the Health and Safety Executive’s website and their online tool, five steps to risk This has helped save businesses an estimated annual assessment on www.hse.gov.uk/business/risk.htm £418 million in administrative burdens. BIS is now making this guidance available directly to businesses in the form of a simple HSE produces 34 example risk assessments for different desktop download that sets out clearly their obligations types of low-risk organisations which bring combined savings throughout the employment lifecycle - from recruitment, of £235 million per year. to retention and leaving. SECTION 2 | Chapter 1: Year 4: Progress so far 22
  23. 23. Administrative burden • The Department for Business, Innovation and Skills (BIS) - reductions: Progress by Employment Law individual departments and agencies • The Department for Communities and Local Due to the nature of their Government (CLG) – remit, three Departments are Planning Law responsible for over 68% of the total administrative burden • The Health and Safety baseline (£13.14 billion). Their Executive (HSE) – Health main policy areas impose the and Safety Law largest administrative burdens The table on the next page shows as they apply to most businesses departmental delivery to date in the UK. and planned delivery for the remainder of the programme. SECTION 2 | Chapter 1: Year 4: Progress so far 23
  24. 24. FIGURe 4: Progress by individual Departments DeLIveRy PLAnneD DeLIveRy DePt BASeLIne tARGet tARGet MAy 2009 MAy 2009 Dec 2009 Dec 2009 MAy 2010 MAy 2010 By MAy By MAy (£M) 2010 (£M) 2010 (%) (£M) (%) (£M) (%) (£M) (%) BIS £4,489.0 £1,122.3 25% £902.8 20.11% £1,114.5 24.83% £1,137.5 25.34% cLG £2,486.5 £621.6 25% £376.1 15.12% £483.1 19.43% £623.8 25.09% HSe £2,022.5 £505.6 25% £382.7 18.92% £500.3 24.73% £540.0 26.70% DH £1,201.9 £300.5 25% £157.1 13.07% £197.9 16.47% £196.5 16.35% Dft £585.0 £146.3 25% £115.2 19.69% £115.5 19.75% £141.6 24.20% DWP £471.0 £117.8 25% £136.0 28.87% £136.0 28.87% £136.0 28.87% Defra £458.2 £114.6 25% £55.7 12.16% £90.3 19.70% £91.5 19.98% MoJ £356.0 £89.0 25% £67.1 18.84% £68.8 19.32% £92.5 25.98% DcMS £343.2 £85.8 25% £155.8 45.40% £158.2 46.19% £158.5 46.19% DcSF £209.7 £52.4 25% £8.3 3.96% £24.6 11.75% £55.4 26.43% HMt £158.9 £39.7 25% £67.4 42.42% £67.4 42.42% £105.4 66.33% Food SA* £90.5 £22.6 25% -£68.7 -75.86% -£68.7 -75.86% -£24.7 -27.24% Home office £83.0 £20.8 25% £19.1 23.00% £32.0 38.49% £32.2 38.76% onS £48.7 £12.2 25% £6.4 13.14% £6.4 13.14% £9.3 19.10% charity commission £36.6 £9.2 25% £1.1 3.05% £6.0 16.43% £6.0 16.4% cabinet office £15.4 £5.4 35% £0.0 0.00% £0.0 0.00% £2.4 15.6% Geo £5.7 £1.4 25% -£0.3 -4.39% -£0.3 -4.39% -£0.3 -4.39% Forestry commission £1.46 £0.4 25% £0.4 26.44% £0.4 26.44% £0.4 26.44% Decc £76.97 N/A N/A -£4.7 N/A -£5.6 N/A -£14.4 N/A totAL £13,140.3 £3,286.64 25% £2,377.5 18.09% £2,926.8 22.27% £3,289.8 25.04% *EU food and feed hygiene regulations, introduced on 1 January 2006, increased the Food Standard Agency’s burden from £90.5m to £204m. Food SA project a reduction in gross admin burdens of £89m by May 2010. 4. Target delivery for cross-Government programme incorporating DECC baseline SECTION 2 | Chapter 1: Year 4: Progress so far 24
  25. 25. The chart below shows that, FIGURe 5: Admin Burden Reduction Programme – Net trajectory May 2005 - May 2010. following some under-delivery in Cautious and best case forecast by May 2010. May 2009 against Departments` December 2008 forecasts, in £4,000 December 2009 the programme is on track and is now delivering £3,500 £2.9 billion in net annual savings, £3.35bn £3.290bn meeting the predicted December 2008 delivery forecast. £3,000 £3.191bn £2.927bn £2.89bn A risk-based analysis of the £2.635bn programme has been carried £2,500 out to predict the best-case and £2.378bn cautious estimates of final delivery in May 2010. The cautious £2,000 estimate takes into account £1.95bn £1.66bn potential delays in the take-up of £1,500 some measures, reflecting that, as a result of recent economic conditions, some measures are £1,000 being taken up by business more slowly than originally anticipated. £0.67bn The cautious analysis anticipates £500 that the programme will deliver £0.35bn £3.2 billion by May 2010 and that Delivered Forecast £0 the full £3.3 billion in net annual savings will be delivered by May 2006 May 2007 May 2008 Dec 2008 May 2009 Dec 2009 May 2010 October 2010. external validation Panel established SP09 - best-case forecast to May 2010 SP08 - net reductions target by May 2010 based on Dec 2009 baseline SP09 - cautious forecast to May 2010 SECTION 2 | Chapter 1: Year 4: Progress so far 25
  26. 26. Ensuring businesses, third and public sectors are feeling the benefits on the ground External Validation Panel Eve Salomon Chair of EVP 2009 Independent Chair: former member of the Better Regulation Commission “The External Validation Panel has a vital role in critically assessing Departments’ simplifications. This independent challenge gives credibility to the Administrative Burden Reduction Programme by ensuring that Departments provide evidence both to support the savings that are claimed and to demonstrate that the measures put in place by the Government are actually being felt on the ground.” The External Validation Panel The Panel provides a robust The focus of the External was established in 2008 in challenge and quality assurance Validation Panel (EVP) is to test response to recommendations role and is made up of the assumptions underpinning from external stakeholders, representatives from the the reported administrative including the National Audit Confederation of British burden reductions to ensure the Office. The Government agreed Industry, the Institute of changes have been effectively that, as more measures started Directors, the British Chambers communicated to business and to deliver opportunities for of Commerce, the Federation of that business is actually businesses to make savings, Small Businesses and the benefiting from the savings external scrutiny to assess Trades Union Congress. claimed by Departments. whether savings were being felt by business was essential. SECTION 2 | Chapter 1: Year 4: Progress so far 26
  27. 27. In 2008, the EVP chose to In 2009, the Panel took a slightly Defra scrutinise the top simplification measures Government different approach to increase the breadth of their scrutiny of NetRegs Departments implemented the programme; by making sure NetRegs (www.netregs.gov.uk) is a web-based service offering between May 2005 and May that each Department involved clear, reliable guidance to UK businesses on how to comply with 2008, covering over 80% of the in the Administrative Burden environmental legislation and reduce their environmental reported gross annual savings. Reduction Programme had impacts. It provides free up-to-date guidance specifically tailored Departments were made been reviewed by the Panel, at to the needs of small and medium sized enterprises (SMEs). It responsible for the scrutiny least once. As a result, 77.5% also serves a wide range of business advisory bodies and trade of smaller measures. of the Programme’s total gross associations across the UK. The guidance covers 36 categories savings delivery to May 2009 Following the Panel’s review, of environmental topics and over 110 business sectors. was validated. gross savings of an estimated In a July 2009 user survey, 94% of businesses rated it as a ‘good’ £1.86 billion were validated, The External Validation Panel or ‘excellent’ business tool. covering 87% of reported delivery will meet again in Summer up to May 2008. 2010 to review and validate final The EVP validated £10 million of savings from the NetRegs delivery across the Programme, programme (which should rise to £12.5 million by 2010) and To complement this scrutiny, taking into account the savings held up NetRegs as a good example which was well-evidenced Departments and the BRE carried realised since May 2009. to demonstrate that it brings real savings and improvements out their own validation exercises to business. on smaller simplification measures (over £10 million) so that overall 92% of reported delivery to May 2008 had been verified. “The External Validation Panel provides a necessary credibility check to the administrative burden savings that Government Departments claim. The CBI is pleased to have played a part in scrutinising this year’s claims against the experiences of business.” Lucy Findlay, Confederation of British Industry SECTION 2 | Chapter 1: Year 4: Progress so far 27
  28. 28. FIGURe 6: Overview of validation totAL GRoSS ADMInIStRAtIve BURDen ReDUctIonS £1.985bn Validated by EVP and BRE/Departments at May 08 totAL GRoSS ADMInIStRAtIve BURDen ReDUctIonS £454m Validated by EVP in May 09 totAL GRoSS ADMInIStRAtIve BURDen ReDUctIonS £3.147bn Delivered at May 2009 % GRoSS ADMInIStRAtIve BURDen ReDUctIonS 77.5% Validated at May 2009 “The FSB was pleased to have been involved with the “The External Validation Panel is essential to the External Validation process of the simplification work credibility of the Administrative Burden Reduction of some Government Departments over the last year. Programme. The Panel’s scrutiny of claimed savings not It is extremely important that the assumptions and only engenders confidence in the system from external calculations that Departments made are tested against stakeholders, but also allows civil servants the benefit what business believes to be the case. Our findings on of a different perspective on their progress. Continuance the Panel demonstrate that there are differing opinions of this type of engagement is vital if policymakers are to about how a saving can be calculated and what level of truly understand the views of the business community.” evidence is needed. The FSB would welcome continued Steve Hughes, British Chambers of Commerce involvement in this work.” Sara Higham, Federation of Small Businesses SECTION 2 | Chapter 1: Year 4: Progress so far 28
  29. 29. CLG Planning Portal "Switching to electronic submission has allowed us HMT to replace a slow, laborious process with one which is quick and simple," explains David Morton. Paperless Settlement This simplification measure has been in force since March 2009. “An added bonus is that the system checks all the information is It lifts the previous requirement for paper settlement and transfer inputted correctly before allowing submission. It is impossible to of title for fund managers, stockbrokers, financial advisers and submit an incomplete planning application. other intermediaries by allowing electronic settlement. As the “Using the portal to submit applications electronically reflects asset management industry develops, electronic systems are our aims on many levels. Not only do we save paper waste but becoming increasingly efficient and this measure is expected the system allows our clients to go online and look at the to save businesses up to £115 million on an annual basis. application at any time, anywhere in the world.” However, the logistics of rolling out a paperless settlement David Morton, Senior Architect, Home Architects. platform to the asset management industry is challenging as it comes at a time of difficult market conditions for firms who have Electronic processing removes much of the administration their priorities elsewhere. As a result take-up by business has usually associated with submitting planning applications and been slower than anticipated, however delivery by May 2010 will has saved businesses almost £40 million annually. still be considerable. SECTION 2 | Chapter 1: Year 4: Progress so far 29
  30. 30. HMT Paperless Settlement " It could take up to ten days or more to settle a UK fund transaction," says Andy. "We estimate that settlement will now take “The TUC is pleased to have been part of the External place more regularly in just four days." Validation Panel; it is very important that the experience Andy Rudd, Product Manager, euroclear UK & Ireland of those affected by regulation is brought to bear in scrutinising the work Departments are doing to make Euroclear, based in Brussels, owns the UK’s central securities depository, which specialises in the settlement of securities sure that regulation is effective, simple and accessible.” transactions. Its paperless approach in settling transactions, Sarah Veale, Trades Union Congress primarily in bonds and equities, is based on electronic debits and credits of cash and securities positions. “The External Validation Panel is a necessary reality Before the recent change in legislation, transaction processing for one remaining UK asset class – investment funds – which is check on the empirical approach to improved highly prevalent within the asset or fund management sector, regulation. The examination of Departmental continued to be carried out in paper form. awareness-raising activities and a focus on ensuring the impact and timing of improvements in the real Andy Rudd explains: “The manual process meant completing the word are really important functions of the EVP.” transaction was time consuming and costly.” Alexander Ehmann, Institute of Directors Now these settlement processes for the fund management sector and those investing in funds can be conducted electronically potentially saving business £115 million annually by May 2010 . SECTION 2 | Chapter 1: Year 4: Progress so far 30
  31. 31. Chapter 2 The Third Sector 2009 achievements The new Charitable Incorporated Organisation (CIO) will be the first Charity Commission The third sector is included in the Government’s strategy to reduce incorporated legal structure Increased threshold for external administrative burdens by 25% by designed specifically to meet the examination of accounts needs of charities as enterprises. May 2010. Many simplification measures, particularly those This means dual registration with " I am delighted that the threshold at which benefiting small business, also the Charity Commission and charities need to have their accounts externally Companies House is now examined is to rise from £10,000 to £25,000 benefit the third sector. In addition, possible. The CIO will reduce red the Government has made good tape and provide charity trustees from 1 April 2009. progress in addressing specific with protections similar to those “Many village halls are charities, run by administrative burdens on the held by directors of limited third sector. companies. volunteers, but as public buildings there are many Streamlined Business rules and regulations which they have to comply Making Life Simpler with. Village hall committees have sometimes had Practices for Small Charities to pay someone to examine the accounts so this Simplifications within the 2006 Charities Act make it easier for Similar to the Better Regulation will result in cost saving.” small business strategy, the third sector organisations to Wendy Dacey, village Halls Adviser Cabinet Office and Charity achieve economies of scale for the community council for Berkshire Commission have a particular through mergers. Although this is interest in supporting small still an area of development for charities. Simplifications made the sector, there are signs that in 2008 are this year beginning organisations are beginning to to impact positively on the sector. benefit from the change in the legislative framework. SECTION 2 | Chapter 2: The Third Sector 31
  32. 32. Making Employment The Department for Business, 23,000 Small Charities Benefit Law Easier Innovation and Skills (BIS) and the OTS have made a specific effort in Benefits to a typical small charity with annual Regulations such as employment 2009 to help ensure that third income of £10 - £25,000 law impact as much on the third sector employers have better sector as other sectors. It can access to the latest employment 1. Need only complete part of Annual Return form. be challenging to keep up to date guidance through Business Link, 2. No longer required to be subject to external scrutiny with changes to employment law which has brought £418 million of (independent examination or audit). which is why the Office of the annual savings to employers in all 3. No longer need to routinely submit accounts and Third Sector (OTS) is launching sectors. This information will be Trustees Annual Reports to the Charity Commission. a Law & Regulation web portal. available on the OTS Law & This online service provides a Regulation web portal by 4. More accessible, consistent advice and guidance summary of regulatory changes via Charity Commission Direct http://www. December 2009. which have an impact on the sector. charitycommission.gov.uk/Library/tcc/pdfs/ccdirect.pdf 5. Easier and more convenient way to update registration details online. 6. Some charities will benefit from a simplified process: • for spending small amounts of capital; • to facilitate mergers; and • to streamline trustee indemnity insurance and trustee payments for the provision of services. 7. Stronger influence through partnership work with small to medium charity umbrella bodies. This represents over £1.66 million of savings. SECTION 2 | Chapter 2: The Third Sector 32
  33. 33. Wider Simplification BIS Reducing Funding & Monitoring Burdens Employment Law Organiser: Funding and monitoring is often highlighted as imposing the most Better access to advice guidance burden on the third sector. The Department for Business, Innovation and Skills (BIS) has In 2009 the Office of the Third Sector published ‘Principles of launched a free desktop tool. Proportionate Monitoring’5 and collaborated with the National Audit Office to publish ‘Intelligent Monitoring’6. These reports encourage Employment Law Organiser provides a summary of the key Government Departments to take account of the third sector in obligations that every employer in a small to medium sized creating less burdensome monitoring regimes. enterprise (SME) needs to meet – from small business managers to charity directors – and includes links through to the relevant A number of Departments including DCSF, DfT and MoJ have free guidance on the Business Link website. embedded the principles of these reports into grant-making practices. This will begin to benefit third sector organisations in 2009 to 10. As many third sector organisations don’t have a dedicated HR team to help out, the new tool will make it much simpler for bosses to comply with their obligations, saving them time and money. Sitting as an icon on a PC desktop, Employment Law Organiser can be opened quickly and used when needed. The Employment Law Organiser will be automatically updated as and when new legislation is introduced helping employers keep up to date with their obligations. Employment Law Organiser is in addition to the £418 million of savings delivered through the employment law guidance programme. www.businesslink.gov.uk/employmentlaworganiser 5. http://www.cabinetoffice.gov.uk/media/216752/principles.pdf 6. http://www.nao.org.uk/guidance_and_good_practice/toolkits/intelligent_monitoring.aspx?alreadysearchfor=yes SECTION 2 | Chapter 2: The Third Sector 33
  34. 34. DCSF Proportionate Monitoring of Grants "We have to answer a number of key questions about how we run the project, what we've achieved, how we've done it. “It used to take me about two hours to do the report and we had to send it in four times a year. Now the reporting process has changed to twice a year and I can get it all done in an hour, which is a real time saver. And the new templates are much easier to use. It’s very valuable for us to save that time. Having the ability to produce very simple but informative paperwork in a far reduced style is fantastic for us.” carol olley, Project Manager, transplant Sport The charity Transplant Sport currently receives a three year grant from the Children, Young People & Families grant programme. Project Manager Carol Olley very much welcomes the recent move by DCSF to simplify the process by which she has to report back on how the money is being used and cut back on red tape and administrative burden. For Carol, the reduction in paperwork is now proving much less time consuming. Overall, these changes are estimated to have saved organisations £30,000. SECTION 2 | Chapter 2: The Third Sector 34
  35. 35. Chapter 3 Helping Small Businesses Small and medium sized strategy has embedded the enterprises (SMEs) are ‘Think Small First’ principle 1. Departmental ‘think Small First’ Approaches critical to the success of the into new policy development. UK economy. SMEs represent The ‘Think Small First’ principle is embedded across Government. • Reducing administrative From December 2008 Government is committed to explain why it 99% of businesses in the UK. burden: Through the has included small business in the remit of all secondary This includes sole traders. Administrative Burden legislation. This system will apply to primary legislation from The contribution SMEs make Reduction Programme, the the 2009-2010 Parliamentary session. to UK GDP is important both for Government has a commitment maintaining employment and to reduce administrative economic activity through the burdens imposed by existing Examples of downturn and providing growth regulations for all firms, as we look towards recovery. including small firms, by Departmental Think The Government’s commitment 25% by May 2010. Small First Approaches to reducing the administrative The Department for Transport • Improving Guidance: has adopted the ‘Think Small burden of regulation for small An ongoing focus of the First’ principle in its approach to businesses in the UK is most Administrative Burden implementation of an EU Recast clearly demonstrated through Reduction Programme has Framework Directive. three initiatives. also been to improve guidance, • Think Small First: The 2008 specifically to assist small Enterprise Strategy set a new firms. This has also led to approach to new and existing considerable savings for regulations for firms employing small businesses. fewer than 20 people. The SECTION 2 | Chapter 3: Helping Small Businesses 35
  36. 36. The Government has simplified • private companies no longer DfT the company law framework prohibited from providing Individual Vehicle Approval through the Companies Act 2006. financial assistance for the The Act has now resulted in purchase of their own shares; "After using the new Basic IVA regulations on annual savings of £390 million • simpler rules on share capital, many occasions, I wanted to write to you and for businesses by simplifying the removing provisions that are thank DfT and BIS for really listening to and regulation and using a ‘Think largely irrelevant to the vast accommodating our representations over the last Small First’ approach. The majority of private companies changes include: three years. and their creditors; and • separate and simpler model “We only import very low volumes of left-hand drive North • separate code of accounting Articles of Association for American vehicles built to FMVSS and CMVSS standards and and reporting requirements private companies, reflecting they cater for a tiny enthusiast market in the UK. The complicated for small companies. the way small companies Recast Framework Directive has been implemented in a operate; These changes make it easier proportionate way for the micro industry sector that we represent.” to set up and run a company, • private companies not required American Imports Agents Association encourage a long-term to have a company secretary; investment culture and provide The Department for Transport used an EU directive as an • private companies not required additional flexibility for investors opportunity to introduce alternative national schemes for to hold an annual general in small firms. manufacturers building vehicles for sale only in the UK. meeting; Individual Vehicle Approval (IVA) is also available to independent importers of vehicles from outside the EC. These national • making it easier for companies schemes will be significantly cheaper than the cost of applying to take decisions by written for approval under the EC scheme. resolutions; SECTION 2 | Chapter 3: Helping Small Businesses 36
  37. 37. BIS 2. Reducing Administrative Burden Company Law on existing regulations "As a designated member in a husband and wife The Health and Safety Executive (HSE) has introduced new help for Limited Liability Partnership (LLP), I just SMEs. A risk assessment and policy template has been developed wanted to say thank you so much for the clear for lower risk SMEs. This template combines the requirements of a risk assessment, health and safety policy and written record of drafting of the new LLP Application of health and safety arrangements into one document, saving time, Companies Act 2006. resources and costs. “Your approach of taking the relevant sections of the 2006 Act The template was launched on 1 September 20097. and restating them in full as they apply to Limited Liability Partnerships is SO HELPFUL! I know the Government was trying to “think small” in terms of the drafting and implementation of 3. Improving Guidance the Companies Act 2006, but I was a bit concerned that there would be all sorts of difficult consequential changes for LLPs, The Government has an ongoing programme to improve however I think you have now avoided this. employment guidance, specifically in relation to small businesses. One innovation has been the development of a new desktop tool, “What you did with the Small LLP Accounts Regulations was the Employment Law Organiser,8 which includes all the facts also very helpful in restating the full requirements. Also, the small businesses need to know regarding employment law. It whole approach of giving clear implementation dates well provides small businesses with access to advice and tools, is ahead is really helpful.” updated as and when new legislation comes through and has a Dr Gareth G Morgan, the Kubernesis Partnership calendar function that acts as a reminder for small businesses. These changes have brought £900,000 savings for businesses, as part of £390 million wider savings from changes to company law. 7. http://www.hse.gov.uk/risk/risk-assessment-and-policy-template.doc 8. www.businesslink.gov.uk/employmentlaworganiser SECTION 2 | Chapter 3: Helping Small Businesses 37
  38. 38. DCSF BIS Removal of requirement National Measurements Office – to send information in hard copy Using a statistical sample to test products "Having these documents / policies and " We are a small company and these changes procedures on the website means that they are are really welcome, particularly during the easily accessible for parents and also updated current economic downturn. We anticipate the when necessary without having to send out paper new policy will save our business approximately copies every time." £15,000 every year, a significant and very Grantham Farm Montessori School welcome benefit." David House, technical Advisor of Beaumont tM Ltd The school, an SME, welcomes the removal of the requirement to send out hard copy information to parents, allowing them to Previously, regulations required each individual alcoholic publish information online instead as a “step in the right direction”. spirit measuring instrument to be tested to ensure it met the The removal of this requirement will save schools £16.3 million annually. legal requirements. Improvements in manufacturing techniques now mean that some manufacturers can produce instruments in consistent ‘batches’ - if one instrument passed the test then it was probable that all the instruments in the batch would pass the test. Following consultation, the National Measurement Office amended the legislation to allow the option of testing samples of the batch as opposed to testing every instrument. SECTION 2 | Chapter 3: Helping Small Businesses 38
  39. 39. BIS The National Measurement Office Self-verification of equipment BIS "Like all responsible businesses we strive to Employment Law Tools reduce our carbon emissions and the changes have " It is important to be on top of how to manage enabled us to test, adjust and verify in one visit. your employment obligations if you want to be a This has allowed us to make better use of our successful and competitive business. As a small resources overall including a reduction in costs in business, you have to watch every penny and get excess of £200,000. Our customers also benefit as much support as possible. I subscribe to the from the single visit, through reduced charges, Business Link newsletter service and look at less disruption, and not having inaccurate the site. dispensers out of action." “The tools on the site are very useful and simple to use. Michael Hollier, MD, Retail & Forecourt Solutions Ltd When I need specific advice I will turn to the professionals but do a lot of the groundwork myself, and using the site isn’t time "This will benefit the nine and a half thousand consuming or complicated. fuel retail sites in the UK, at least seven and “We often employ part-time staff and being up to date with the a half [thousand] of these being small to latest in employment law and legislation helps us to be confident medium-sized enterprises." when it comes to recruitment decisions.” A spokesperson from the Petrol Retailers’ Association John charles, catering2order Manufacturers, installers and repairers of trade equipment John Charles established Catering2Order in 2007 and now are now able to self verify after they have adjusted equipment employs 15 staff. Since the early stages of setting up his to improve its accuracy. business, he has used many of the tools available on www.businesslink.gov.uk This change has mainly benefitted petrol and diesel retailers whose equipment is subject to quite frequent repair. It has saved Improvements to employment law guidance have saved the retail fuel industry approximately £615,000 a year. businesses £418 million a year. SECTION 2 | Chapter 3: Helping Small Businesses 39
  40. 40. SECTION 3 Wider Simplifications (outside of Admin Burden Reduction Programme) Chapter 1 The Public Sector Chapter 2 Simplifications at the European level Chapter 3 Reducing policy burdens and irritants 40
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