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Page 36 Better Regulation Berr 1


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Recognition by UK Government of the support for the American Import Agents Association after successful engagement and lobbying campaign

Recognition by UK Government of the support for the American Import Agents Association after successful engagement and lobbying campaign

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  • 1. Summary of Simplification Plans 2009
  • 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. 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. 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. 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. SECTION 1 Summary Chapter 1 Executive Summary Chapter 2 Better Regulation – what next? 6
  • 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. SECTION 1 | Chapter 1: Executive Summary 7
  • 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. 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. SECTION 1 | Chapter 1: Executive Summary 9
  • 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. 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. 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. 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. 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. 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. • 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. 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. 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. 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. 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 (£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. 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. 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 ( 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 £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. 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. 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. 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. 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. 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 ( 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. 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. 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. 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. 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. 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. 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. 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. 5. 6. SECTION 2 | Chapter 2: The Third Sector 33
  • 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. 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. 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. 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. 8. SECTION 2 | Chapter 3: Helping Small Businesses 37
  • 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. 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 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. 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
  • 41. Chapter 1 The Public Sector Reducing bureaucracy Cutting Bureaucracy for our 2009 achievements in 30% Reduction in Number in the Public Sector Public Services: Key Aims reducing bureaucracy in of Requests for Information The 2007 Government strategy, • Fewer and better co-ordinated the Public Sector In 2007, eleven Government “Cutting Bureaucracy for our requests for data from the This year there has been real Departments identified and Public Services” set out to front line – 30% reduction in progress on reducing the number published figures which meant address concerns from frontline information requests from of information requests and on that, for the first time, workers that too much time was central Government to the reducing the burden of Government had a picture of what being spent on unnecessary public sector front line by 2010; information requests from information is being requested paperwork and requests for central Government. The bulk from the public sector frontline. • A reduction in the stock of information from central of delivery has now been made, unnecessary bureaucracy in Nine Government Departments Government Departments. which is a positive and tangible the areas the front line cares are now reducing the number of The strategy seeks to deliver a step in reducing central most about; information requests9. To date, tangible and permanent reduction Government bureaucracy for a 30.8% reduction has been in unnecessary Government • Better engagement with the public sector front line. delivered across these nine bureaucracy to allow frontline frontline workers to identify Departments, five of which have staff to spend more time and remove bureaucracy; and already delivered a reduction of delivering key services. • Better regulation that is at least 30%. understood and mirrored through the public service delivery chain. 9. As the Department of Health is reducing the ‘number’ of ‘data line’ requests in Social Care (28.6% to date) and the overall ‘burden’ of data requests in Healthcare they have not been included in this aggregate. Healthcare burden reduction is a larger programme of work and is recorded separately. SECTION 3 | Chapter 1: The Public Sector 41
  • 42. FIGURe 7: Delivery on the reduction in number of information requests from central Government DePARtMent nUMBeR oF InFoRMAtIon nUMBeR oF InFoRMAtIon eXPecteD nUMBeR oF ReQUeStS In 2007 (BASeLIne) ReQUeStS In 2009 InFoRMAtIon ReQUeStS In MAy 2010 MoJ 82 57 54 cLG 148 91 91 DWP 17 11 8 cabinet office 8 8 8 ex-BeRR10 21 15 15 Defra 20 8 8 Dft 38 26 26 DcMS 33 30 30 Home office 111 85 75 totAL 478 331 315 10. The ex-BERR baseline includes data streams that are now the responsibility of either DECC or BIS SECTION 3 | Chapter 1: The Public Sector 42
  • 43. FIGURe 8: Reduction of information requests 160 140 nUMBeR oF InFoRMAtIon ReQUeStS 120 100 80 60 40 20 number of Information Requests in 2007 (Baseline) number of Information Requests in 2009 £0 expected number of Information Requests in May 2010 MoJ cLG DWP co ex-BeRR DeFRA DFt DcMS Ho DePARtMent SECTION 3 | Chapter 1: The Public Sector 43
  • 44. 30% Reduction in Burden of FIGURe 9: Delivery on reduced burden of information requests MoJ Requests for Information DePARtMent MeASUReD In... 2007 DAtA % ReDUctIon By Crown Court Two Departments are reducing BURDen BASeLIne DeceMBeR 2009 the burden of information checks stopped requests they impose on public DcSF Cost £6,400,000 9% (-£595,000) The number of data items sector frontline staff through a DH Staff resource Equivalent to 24.3% (-120.8 needing verification by court mixture of removing requests HeALtHcARe approx 498 FTE person years) completely, reducing the staff over a year. staff has been reduced by an estimated 10-15,000. frequency of necessary requests This was a direct product and making data returns more Overall, six of the eleven of a Crown Court Data efficient and streamlined. Departments are on track to Quality Steering Group as Reducing the burden of deliver a reduction of at least a partnership between the information requests has proved 30% by number of information HM Court Service, Office more challenging than anticipated requests and/or by value by for Criminal Justice Reform for the Department of Health (DH) May 2010. (OCJR) and Ministry of and the Department for Children, Justice statisticians. They Schools and Families (DCSF). To examined the flow of data date, DH has delivered a 24.3% from courts to Government reduction in burdens on statistical publications, healthcare professionals, the and how this could remaining delivery is expected be streamlined. by October 2010. DCSF has delivered a 9% reduction to date and the remaining delivery is expected by the end of the 2011/12 academic year. SECTION 3 | Chapter 1: The Public Sector 44
  • 45. Engaging with Other groups scrutinising the the frontline and data burdens being imposed on CLG reducing the stock the public sector frontline include Simpler Planning Applications the Bureaucracy Reduction of unnecessary Group in the Department for "At Teesdale we have worked hard to encourage bureaucracy Business. This group aims to electronic submission because it's a real help to A range of Government minimise burdens imposed by the administration team. It cuts out the time- Departments now have public the Skills Funding Agency and the consuming process of scanning plans and linking sector stakeholder forums in Young People’s Learning Agency. drawings to files and eliminates the need for which front line workers scrutinise the need for Also the National Police data entry because the information drops Improvement Agency helps information requests from automatically into our back office systems. to drive the reduction of central Government as well as bureaucracy for the Police. “More than 65% of our applications are now submitted overseeing the reduction in stock electronically and the team can process ten a day compared of requests. For example the Finally, DCSF’s Implementation to three paper forms. We are a small authority with limited Reducing Data Burdens Steering Review Unit carries out a similar resources and that makes a massive difference.” Group monitors information role in the education sector. burdens on local authorities. Maria Ferguson, former Development control Manager In order to address the burden The steering group is led by the at teesdale District council of bureaucracy throughout the Department for Communities public sector delivery chain all of By May 2010, the ability to submit applications electronically and and Local Government and brings the above groups actively engage increased consistency in the Planning System will be saving local together representatives of with intermediary and delivery authorities an estimated £85m in addition to private sector central Government bodies such as local authorities savings of £137 million. Departments, local Government, and strategic health authorities. the Local Better Regulation Office and the Audit Commission. SECTION 3 | Chapter 1: The Public Sector 45
  • 46. Wider work on improving public sector savings DCSF The cutting bureaucracy strategy complements the wider Treasury- Special Educational Needs led public sector efficiency programmes: the Value for Money Programme (2007); the Public Value Programme (2008) and the (SEN) Statementing Process Operational Efficiency Programme (2008). All three programmes are In 2006/07 DCSF asked its frontline workers to identify which were generate significant public-sector efficiency savings and contributing the key irritants in each of its three sectors (early years, schools to reducing unnecessary bureaucracy in the public sector. and 14-19 years). Both early years and schools put the SEN In addition to the savings from reducing central government data statementing process at the top of the list. A project was set up in requests set out above, Departments’ simplification plans include Spring 2007 and reported in May 07, to look at the administrative details of a range of ways in which they are improving efficiency and processes inherent in statementing. It identified a number of reducing bureaucracy in the public sector. The examples in the 2009 areas, mainly to do with data transfer between schools and Simplification Plans, which form part of the wider efficiency authorities, where enhanced online systems could significantly programmes, illustrate £1,322.7 million of annual savings delivered reduce the administrative burden on schools while retaining by December 2009 with projections of £1,453.8 million of savings being necessary assurances. Several options have been considered to realised by May 2010. see if it would be possible to link into existing work. DCSF is now developing a system with the aim to have some results for Going forward, the Government has recently published a plan for discussion in 2010. further reducing the burdens on the front line as part of ‘Putting the Front-line First: Smarter Government’11. 11. ‘Putting the Front-line First: Smarter Government’: HM Government, CM 7753, December 2008 SECTION 3 | Chapter 1: The Public Sector 46
  • 47. Chapter 2 Simplifications at the European level “I am committed to a policy Under the leadership of The Commission has estimated that continues to remove Commission President Barroso the administrative burden unnecessary administrative and former Vice-President stemming from the 72 legal acts burdens and provides the legal Verheugen, EU Better Regulation in scope of the EU Simplification certainty companies need to has come a long way. Steps have target to be approximately €123.8 make long term investments. been taken to improve both the billion as of 2005. VAT and By 2012 the next Commission stock and flow of EU legislation company law were found to be will deliver on our commitment and to embed the ‘Think Small the most burdensome fields, to reduce administrative First’ principle in the EU policy- together responsible for over burden by 25%.” making process. At the Spring 80% of the total. European Council in March 2007, President of the European On 22 October 2009 the EU Heads of State unanimously Commission, José Manuel Commission published a report agreed to set a target to reduce Durão Barroso, setting out how the EU is gross administrative burdens progressing to achieve the 2012 3 September 2009 arising from EU legislation by target. It lists measures already 25% by 2012. The UK Government taken, legislative proposals which played a key role in securing this are pending agreement by the target and is working hard to Council and Parliament, as well deliver it. as additional ideas for the new Commission to consider. SECTION 3 | Chapter 2: Simplifications at the European level 47
  • 48. UK engagement with the EU The UK is actively engaged with HSE other Member States to encourage the EU institutions Sensible Risk Management to deliver administrative burden across the EU reductions that will make a tangible difference for businesses HSE successfully influenced the direction of a European and others. Campaign on risk assessment, led by the European Agency for Safety and Health at Work. In line with HSE’s Sensible Risk In some areas, the European Management campaign, HSE proposed that the European Commission is following the UK’s Campaign for 2008-09 should emphasise that good risk lead. For example, it is promoting assessment is not about completing paperwork for its own sake the Health & Safety Executive’s but is about identifying and taking practical actions that manage approach of producing clear and hazards and risks so that workers are protected. The Agency simple guidance for employers on agreed to this approach. how to assess risks in the workplace, thus reducing the need to pay for external advice. In other areas, it is responding to UK suggestions for simplification. For example, the Government called on the Commission to simplify the Biocidal Products Directive in 2007. SECTION 3 | Chapter 2: Simplifications at the European level 48
  • 49. HSE DfT The Biocidal Products Directive Cutting Paperwork for Drivers and This Directive regulates biocides - products used to control Making Our Roads Safer harmful organisms. Biocides include disinfectants, wood and European legislation has changed many of the rules on drivers’ other preservatives and pest control agents. hours and how they should be recorded to help make our roads Problems with the Directive have slowed the review of whether safer, while making it less burdensome for those affected to biocidal substances are suitable for use in commercial products, comply with the law. to such an extent that a decade after its adoption there are almost One of the biggest changes is a new requirement to equip all new no biocidal products approved under it. large commercial vehicles (mostly trucks and coaches) with Furthermore, the high cost of supporting active substances digital tachographs. A tachograph is a device that records time through the review process has resulted in many existing biocidal and distance travelled, and digital tachographs significantly products being withdrawn from the market for economic reasons. reduce the average time needed to record this information. The This has hit SMEs particularly hard. Department for Transport has estimated that this change to EU law could save UK operators £15 million in 2009, £14.4 million of In response to the UK Government’s call for the Directive to be which has already been validated by the External Validation Panel. simplified to address these problems, the Commission adopted This is set to rise as an increasing number of new vehicles a proposal to revise this Directive in June this year. The proposed installed with digital tachographs come onto our roads. Commission Regulation would provide the option for certain biocidal products to be authorised once at Community level instead of in each Member State in which they are placed on the market. In addition, the proposal sets out more flexibility in meeting data requirements that need to be submitted as part of the authorisation process; and proposes mandatory data sharing with regard to testing of biocidal products that has been undertaken using vertebrate animals. SECTION 3 | Chapter 2: Simplifications at the European level 49
  • 50. Risk assessment work carried The Government will do its out by the Food Standards Agency Increasing permitted levels utmost to facilitate swift was instrumental in an of contaminants in Cereals agreement of European agreement reached by the measures that will reduce Standing Committee on the Food "This has been an extremely important issue burdens on UK stakeholders. Chain and Animal Health. The to address for ACFM and has required much Departments will continue to risk assessment identified that effort, trust and co-operation from all involved. report on savings resulting there was no significant risk to from changes to, or better consumers of increasing the “We have found working with you and your team to implementation of, EU law maximum permitted level for be very constructive and you have offered guidance and advice in future editions of their zearalenone (ZON) for some throughout the process which has contributed hugely to the Simplification Plans. high-fibre breakfast cereals. The results achieved. We look forward to continuing this partnership Committee therefore agreed a in the months and years ahead.” temporary increase in June 2009. Ken Wood, chairman of the Association of cereal Food “To deliver on our pledge Manufacturers Ltd to reduce burdens on The largely UK-based production businesses by 25% by 2012, industry needed this relaxation as They wrote to the Head of Policy expressing their thanks for we must redouble our efforts adverse weather conditions in the the hard work of the Agency team involved. to regulate more effectively previous year’s harvest had had a and more rigorously assess serious impact on consumer impacts of draft legislation.” choice and market supply. Letter from Prime Minister, Gordon Brown, to the President of the European Council, 28 October 2009 SECTION 3 | Chapter 2: Simplifications at the European level 50
  • 51. Improvements to incoming European legislation The UK has also worked hard to the eU Services Directive influence improvements in the quality of new European "This will be an opportunity for smaller authorities to legislation. Proof of this be able to put their processes online at minimal cost improvement is the Commission’s given that so much is being provided by BIS." revised guidelines for officials on James Hann, Licensing Manager, Ashford Borough Council how and when to do impact assessments published in “Have you ever thought of selling your services in the EU? For small January 2009. A new and business this is now much easier through the implementation of the “I am committed to smart welcome move towards greater Services Directive and the new Points of Single Contact. Information regulation, and I want to openness was the Commission’s and formalities about all EU countries can be found online from reiterate that simplification public consultation on the your desktop. This Directive has huge potential for small service of procedures and a proposed changes. Based on its providers to tip their toes into EU markets and expand their reduction of administrative experience of successful Better activities abroad. An opportunity not to be missed!” burdens on business, Regulation initiatives at the particularly SMEs, will national level, the UK Tina Sommer, Chairman International Affairs, remain a priority in the next Government pushed for a number Federation of Small Businesses Commission. This task, just of delivered Commission like the Impact Assessment improvements: consultations on The EU Services Directive will be brought into force in the UK on Board and ex-post complex proposals, or those 28 December 2009. The aim of the Directive is to help open up the evaluation, will be placed conducted during holiday periods, internal market in services further by making it easier for service directly under my authority should be extended beyond the providers to set up business and offer services in other EEA states. to fully reflect the priority minimum eight weeks; impact This is expected to increase output in the UK by an estimated I give to it.” assessments will be carried out £4 billion to £6 billion per year, increase employment opportunities for some secondary legislation and increase trade. UK SMEs in particular are set to benefit because President of the European (“comitology”) and there is now they are disproportionately affected by barriers to establishment Commission, José Manuel greater focus on quantifying costs and account for 44.2% of the UK service sector. Durão Barroso and benefits. 15 September 2009 SECTION 3 | Chapter 2: Simplifications at the European level 51
  • 52. Chapter 3 Reducing policy burdens and irritants The Government has not set a Better Regulation Agenda, Definition target for reducing policy costs within the current programme. building on the current programme, Government Policy burdens are the costs However, Departments are has committed to reducing inherent in meeting the aims constantly looking for the policy costs associated of regulation. These may opportunities to simplify with regulations by £5 billion impose capital costs (e.g. regulation. As part of the ongoing between 2010 and 2015. purchasing new equipment) or impose cash costs or productivity costs (e.g. FIGURe 10: Gross Policy savings for private and third sectors offering a pension scheme DeLIveRy to DAte PRoJecteD or extending annual leave entitlement for employees). May 06 May 07 May 08 May 09 Dec 09 May 10 Policy costs differ from £221.3m £736.8m £917.6m £1,071.2m £1,190.0m £1,464.6m administrative costs which are incurred in gathering information about a firm’s activities and providing evidence of compliance. SECTION 3 | Chapter 3: Reducing policy burdens and irritants 52
  • 53. Policy Burdens: Process by Individual Department and Agency The table below highlights some of the policy savings Departments have implemented that will benefit private and third sector organisations. FIGURe 11: Top policy savings for private and third sectors between 2005-2009 (figure continues on the next page) PoLIcy DeScRIPtIon eStIMAteD AnnUAL ReDUctIonS PoLIcy SAvInGS AS At DeceMBeR 2009 HSe This regulation simplifies the process for checking contractors’ £166m Construction (Design competence whilst consolidating four separate pieces of legislation. and Management) Regulations 2007 Food SA A pack and a simple record-keeping diary aimed at helping small food £128m Safer Food, caterers and retailers comply with food safety management procedures. Better Business Packs have been developed for various cuisine types, with an interactive DVD in 16 different languages. Training and coaching advice is also provided. DH Multi-award winning BROMI allows industries to gain from streamlined £104m Better Regulation of processes and faster time to market. Medicines Initiative (BROMI) Dft DfT published a revised “Guide to Maintaining Roadworthiness” in £100m Better targeted December 2006. The guidance will reduce the number of times some safety inspection modern vehicles need to be given vehicle inspections (other than annual requirements for goods ‘MoT’ tests), saving time and costs for some operators. vehicle and passenger transport (HGV and PSV) operators Dft Concluding agreements to remove restrictions on international air travel £100m Removing bilateral to the UK which will have the effect of increasing air travel to and from restrictions on the UK. This will increase the revenue of relevant companies. international air travel to and from the UK SECTION 3 | Chapter 3: Reducing policy burdens and irritants 53
  • 54. PoLIcy DeScRIPtIon eStIMAteD AnnUAL ReDUctIonS PoLIcy SAvInGS AS At DeceMBeR 2009 Dft Mutual recognition of Certificates for Radioactive Material Transport £75m Reduced burden on Packages between UK and France. A single application will result in radioactive material certification in both UK and France. transport industry BIS This has lead to more predictable and comprehensible laws for £68m Other Companies Act private businesses. measures including codification of directors’ general duties HSe Allows employers to choose from two training courses in the future £52m First Aid Guidance for their first aiders. Food SA Slaughterhouses and cutting plants no longer required to dispose £40m Removal of Restrictions of UK beef bones as animal by-product. They may now sell bones on use of Beef Bones for use in food. Food SA OTM (Over-thirty month) cattle can enter the food chain as long as £39m Replacement of the they test negative for BSE. Over Thirty Month (OTM) rule SECTION 3 | Chapter 3: Reducing policy burdens and irritants 54
  • 55. Reducing Non-Monetary Irritants Some regulations, whilst not having a high cost associated with Defra compliance, attract considerable negative feedback from those affected. These regulations, which are often known as ‘business June and December irritants’ tend to serve a purpose which is not obvious to those who Agricultural Surveys implement them, duplicate other activity or require an action or These online surveys allow farmers to quickly and easily complete information which is self-evident. The October 2009 Better Regulation, details of their current farming activity. The benefit of this is that Better Benefits Report12 found that “Even though the cost of regulation accurate returns provided through online surveys minimise other is important, especially to small business owners, bureaucratic red information requests that Defra makes of farmers. There is tape, the difficulty of finding information, lengthy training in regulatory currently an audience of approximately 40,000 farmers for the requirements, having to constantly revisit changing regulatory policy, June Survey and 20,000 for the December Survey. and haphazard enforcement of the rules are all more immediate concerns to the individual”. “By the way I recently filled out our June Census through the site and it was a doddle!!! Congratulations to your team for developing Examples of how these are being tackled include: something useful and user friendly.” • CLG has amended its procedures for correcting minor errors Fay Grace, Life Hill Farm at appeal on planning applications. As long as the error is inconsequential to the decision, it may be corrected easily and simply, greatly improving the efficiency of the appeal procedure. • The Food Standards Agency has produced a document to consolidate all of the guidance on allergen labelling legislation. This has made it easier to understand and conform to the relevant regulation. 12. SECTION 3 | Chapter 3: Reducing policy burdens and irritants 55
  • 56. Home Office Criminal Record Bureau – Electronic Services In April 2009, CRB launched its first electronic application channel. This is part of a wider programme to make all of its services available electronically and will eventually see more than one million applications submitted using this route. The e-Bulk service is aimed at Registered Bodies which each submit more than 3,000 applications each per year. Ann Matthews (Girl Guiding UK) “As an organisation that relies solely on volunteers to deliver guiding to approximately 600,000 girls and young women, a safe and speedy recruitment process is essential. E-Bulk is turning around applications in four days, and the majority in no more than six. Additionally, it has consolidated our existing processes by ensuring our error rate is kept to a minimum.” SECTION 3 | Chapter 3: Reducing policy burdens and irritants 56
  • 57. SECTION 4 Annexes Annex A Cautious Predictions – risks to delivery by May 2010 Annex B External Validation Panel May 2005 – May 2009 Annex C The Measurement Process: The International Standard Cost Model Methodology Annex D Baseline Adjustments 57
  • 58. Annex A Cautious Predictions – risks to delivery by May 2010 The Administrative Burden • In some cases the • The cumulative result of Our overall view is that the Reduction Programme report implementation of these two factors is that Programme is still on track to this year includes best-case and simplification measures Departments are being more deliver, albeit with tight margins. cautious delivery forecasts to is likely to be delayed cautious about the delivery The Government’s cautious May 2010. due to linkages with the claims they are making estimates result in a marginally legislative programme (if a against their targets and their lower delivery overall. The net • For some simplification Parliamentary Bill is delayed predictions for future delivery. cautious estimate for delivery by measures, whilst the then the framework changes May 2010 is £99.8 million lower Department has put the This has led us to carry out a cannot be made to support than the net best-case estimate, legislative and regulatory more detailed analysis of the a simplification). This is, in or delivery of 24.28% overall as framework in place, offering programme overall, and the risks part, due to the pressure on compared to the 25.04% best- the opportunity for savings to delivery, than in previous Parliamentary time over the case estimate. in administrative processes, reporting years. The results of last session with unexpected businesses have not taken this analysis are shown below and more urgent legislative advantage of the opportunities and depict our best-case and pressures, taking precedence presented. This is primarily cautious estimates of delivery. in some cases. because, given the recent economic climate, business leaders’ attention has been elsewhere. SECTION 4 | Annex A: Cautious Predictions – risks to delivery by May 2010 58
  • 59. FIGURe 5: Admin Burden Reduction Programme – Net trajectory May 2005 - May 2010. Cautious and best case forecast by May 2010. £4,000 £3,500 £3.35bn £3.290bn £3.191bn £3,000 £2.927bn £2.89bn £2.635bn £2,500 £2.378bn £2,000 £1.95bn £1.66bn £1,500 £1,000 £0.67bn £500 £0.35bn Delivered Forecast £0 May 2006 May 2007 May 2008 Dec 2008 May 2009 Dec 2009 May 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 4 | Annex A: Cautious Predictions – risks to delivery by May 2010 59
  • 60. The table below explains how the cautious estimate is arrived at: FIGURe 13: Administrative Burden Reduction Programme – Net trajectory May 2005 – May 2010. Cautious and best case forecast by May 2010 (figure continues on the next two pages) DePARtMent MeASURe DeLIveRy BeSt-cASe cAUtIoUS eXPLAnAtIon DeceMBeR vALUe MAy vALUe MAy 2009 2010 2010 BIS Modernisation of insolvency £0m £10m £0m Measure should be coming into rules 1996 force in April 2010 might slip HSe Gas Safety (Installation and £0m £27m £0m Measure is implemented late Use) Regulations in the programme and may not Reviewing the requirement for realise full savings a landlord to carry out a gas safety check Removal of Dock Forms £0m £3.4m £0m Implementation is intended Removal of a form to certify late in the programme and a dock transport vessel may slip outside the timeframe Business on-line project £0.67m £10m £0.67m Parts of programme still Transferring HSE forms to to be implemented and Savings electronic and interactive format may slip outside of programme timeframe cabinet office charities (Qualified £0m £2.4m £0m Measure has already faced Surveyors` Reports) slippage and may not Regulations 1992 be implemented inside Benefits would be felt by programme timeframe charities who wish to sell or lease land held by or in trust for them Food SA Feed Hygiene £0m £35m £21m Measure is implemented late Simpler guidance to clarify in the programme and may not what and how feed records realise full savings should be kept for farmers on feed record-keeping requirements SECTION 4 | Annex A: Cautious Predictions – risks to delivery by May 2010 60
  • 61. DePARtMent MeASURe DeLIveRy BeSt-cASe cAUtIoUS eXPLAnAtIon DeceMBeR vALUe MAy vALUe MAy 2009 2010 2010 Food SA the Meat Products (england) £0m £9m £6.3m Measure is implemented late (Amendment) Regulations 2010 in the programme and may not A reduction in the amount of realise full savings time required to decide what labelling is required for some meat products onS Further measures to reduce £0m £2.9m £1.45m Measure is implemented late the administrative burden of in the programme and may not surveys on business realise full savings Dft Introductions of digital £14m £24.76m £17m Whilst measure is in place, tachographs take up may be slower than The move from analogue to first expected digital tachographs reduces the cost of making records of drivers’ hours, greatly Savings facilitating the collection, analysis and storage of data for HGV operators HMt Better Regulation Measures £77m £115m £94.3m The measure is currently for the Asset Management in place and delivering, Sector (Paperless but take up is slower than Settlement) expected due to the current Lifts the previous requirement economic climate for paper settlement and transfer of title for find managers, stockbrokers, financial advisers and other intermediaries by allowing electronic settlement Home office Animal Scientific Procedures £1.63m £1.81m £1.77m Take up may be lower then Involves an elimination of first expected the requirement to submit documents to regulators SECTION 4 | Annex A: Cautious Predictions – risks to delivery by May 2010 61
  • 62. DePARtMent MeASURe DeLIveRy BeSt-cASe cAUtIoUS eXPLAnAtIon DeceMBeR vALUe MAy vALUe MAy 2009 2010 2010 Ho Firearms Act 1968: Register £0.16m £0.18m £0m Take up may be lower then of firearms transaction & first expected supplying data of purchaser Savings Reviews of the forms used to reduce duplication, cut down on the stages and make them simpler to complete BIS Batteries and -£1m -£1.4m -£2.1m Total burden will depend on the Accumulators Directive number of businesses affected An increased burden as by change in regulation producers are required to register and provide reports on batteries and accumulators Burdens and spent batteries and accumulators cLG Permeable Surfacing £0m -£0.3m -£0.5m Total burden will depend on the Impermeable surfacing number of businesses affected of domestic front gardens by change in regulation would be subject to planning permission to reduce surface water run off totAL £239.75m £139.89m DIFFeRence £99.86m SECTION 4 | Annex A: Cautious Predictions – risks to delivery by May 2010 62
  • 63. Annex B External Validation Panel May 2005 – May 2009 The External Validation Panel The remit of the External Summary of was established in 2008 in Validation Panel (EVP) is to test 2008 validation response to recommendations the assumptions underpinning The Panel met for the first time in from external stakeholders, the reported administrative 2008 and chose to scrutinise the including the National Audit burden reductions, to ensure the top simplification measures Office. Government agreed changes have been effectively Government Departments had that, as more simplification communicated to business implemented between May 2005 measures started to deliver and that business is actually and May 2008, a sample covering opportunities for businesses benefiting from the savings over 90% of the reported gross to make savings, external claimed by Departments. annual savings. Departments scrutiny was essential to were made responsible for the assess whether the reported scrutiny of smaller measures savings were being felt by delivering more than £10 million business on the ground. in annual savings. The Panel provides a robust challenge and quality assurance role and is made up of representatives from the Confederation of British Industry, the Institute of Directors, the British Chambers of Commerce, the Federation of Small Businesses and the Trades Union Congress. SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 63
  • 64. FIGURe 14: EVP08 scrutiny of measures FIGURe 16: Total validated by EVP in 2008 nUMBeR oF totAL GRoSS totAL GRoSS SAvInGS to totAL GRoSS % oF MAy 2008 MeASUReS (£M) MAy 08 RePoRteD In SP08 SAvInGS to DeLIveRy MAy 08 RePoRteD AS vALIDAteD By evP May 08 delivery selected for 24 £1,992.0m vALIDAteD review by evP08 In SP08 May 08 delivery not selected 182 £284.6m £2,148.0m £1,863.4m 86.75% for review by evP08 EVP08 asked Government to review the remaining 182 simplification measures to ensure they were credible. BRE and Departments FIGURe 15: EVP08’s outcome undertook this exercise for measures realising over £10m gross totAL GRoSS savings as at May 2008 which represented over 70% of the remaining (£M) measures delivering at that time and not subject to external scrutiny. Delivery validated by the evP08 £1,863.4m Delivery withdrawn from the £96.1m* nUMBeR oF totAL GRoSS evP08 process MeASUReS (£M) Delivery deferred by the Panel £32.5m** Measures realising over 8 £121.3m13 £10m gross savings as at May 2008- validated by evP * see Figure 19 for breakdown ** see Figure 20 for breakdown 13. This figure does not include two measures delivered by MoJ regarding Legal Aid Reforms worth a total of £27.65m which were incorrectly included in the BRE/Department validation total in the 2008 Summary Report. These measures were subsequently put forward to the EVP09 to ensure savings were effectively implemented and felt by businesses. SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 64
  • 65. FIGURe 17: Result of 2008 validation totAL GRoSS SAvInGS to GRoSS MAy 08 % oF MAy 2008 MAy 08 RePoRteD In SP08 DeLIveRy vALIDAteD DeLIveRy By eItHeR evP oR vALIDAteD BRe/DePARtMentS AcRoSS tHe PRoGRAMMe £2,148.0m £1,984.7m 92.4% totAL GRoSS SAvInGS to GRoSS Dec 08 % oF Dec 2008 Dec 08 RePoRteD In SP08 DeLIveRy vALIDAteD DeLIveRy By eItHeR evP oR vALIDAteD BRe/DePARtMentS AcRoSS tHe PRoGRAMMe £2,630.0m £1,984.7m 75.5% SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 65
  • 66. FIGURe 18: Measures fully validated by EVP08 (figure continues on the next page) evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte vALUe vALIDAteD FInAL evP08 StAtUS DePt AS At MAy 08 (DePt) By evP (MAy 08) EVP08 1 BeRR Electronic communication £76m May 2007 - May 2008 £76m Fully validated with shareholders EVP08 2 BeRR Capital Maintenance £68m May 2007 - May 2008 £68m Fully validated EVP08 3 BeRR Remove requirement £45m May 2007 - May 2008 £45m Fully validated for private companies to hold AGM EVP08 5 cLG Housing Act 1985 Repeal £207m May-05 £207m Fully validated of Part XI EVP08 6 HSe Sensible Risk £163.3m May-08 £163.3m Fully validated Management - Example Risk Assessments EVP08 7 cLG Competent Persons £132m Dec-05 £132m Fully validated Schemes EVP08 8 DIUS Weights and Measures: £129m May-06 £129m Fully validated Weights and Measures (Packaged Goods) regulations 1986 EVP08 9 DH BROMI + EU + £104m Dec-06 £104m Fully validated Pharmaceutical EVP08 10 DcMS Licensing Act 2003 £181m May-06 £181m Fully validated EVP08 11 DWP Replace minimum funding £64m Dec-05 £64m Fully validated requirement legislation EVP08 12 DcMS Gambling Act 2006 £56.6m N/A £56.6m Fully validated EVP08 13 cLG Fire Safety RRO £53m Dec-06 £53m Fully validated EVP08 16 BeRR Various Employment £418m Dec-07 £418m Fully validated Guidance measures SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 66
  • 67. evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte vALUe vALIDAteD FInAL evP08 StAtUS DePt AS At MAy 08 (DePt) By evP (MAy 08) EVP08 17 Dft Revision of the passenger £30.5m May-07 £30.5m Fully validated rail franchise map, reducing the number of separate franchises EVP08 18 Food SA Safer Food, £28.3m May-08 £28.3m Fully validated Better Business EVP08 19 HSe Control of Asbestos £27.7m Dec-06 £27.7m Fully validated Regulations EVP08 20 DWP Improve pension £24m May-06 £24m Fully validated regulations to make payments by employers less prescriptive EVP08 22 HSe Workplace (Health, Safety £17m Dec-07 £17m Fully validated and Welfare) Regulations - guidance on labelling drinking water EVP08 23 HSe Reporting of Injuries, £16.5m Dec-07 £16.5m Fully validated Diseases and Dangerous Occurrences Regulations (RIDDOR) EVP08 24 DWP Simplify member- £22.5m May-06 £22.5m Fully validated nominated trustee/ director requirements SUBtotAL £1863.4m £1863.4m SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 67
  • 68. FIGURe 19: Measures withdrawn from the EVP08 process evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte vALUe WItHDRAWn FInAL evP08 StAtUS DePt AS At MAy 08 (DePt) (MAy 08) EVP08 4 BeRR Other Companies Act £28m May 2007 - May 2008 £28m Withdrawn - measures including not yet delivered codification of directors’ general duties EVP08 14 Defra TSE Regulations 2006 £44.4m May-06 £44.4m Withdrawn - technical adjustments EVP08 21 Defra Pollution Prevention £23.7m May-08 £23.7m Withdrawn - and Control technical adjustments SUBtotAL £96.1m £96.1m FIGURe 20: Measures deferred by EVP08 evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte vALUe ReJecteD FInAL evP08 StAtUS DePt AS At MAy 08 (DePt) EVP08 15 HSe Manual Handling £32.5m May-08 £32.5m Deferred- savings Operations Regulations not yet delivered SUBtotAL £32.5m £32.5m SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 68
  • 69. FIGURe 21: EVP 2008 - BRE/Department’s Review DePtS SIMPLFIcAtIon nAMe GRoSS SAvInGS coMMentS AS At MAy 08 Food SA Production of UK Guidance Notes for £15.6m Regulation (EC) 178/2002 (Traceability) Food SA Revocation: Dairy Products £14m Food SA Revocation: Fresh meat £11m cLG Building Regulations: User Centred Guidance £12m DH Review of National Minimum standards for £28.3m Adult Social Care- stage 1- reduction of inspection frequency and statutory measures DH Better Regulation of Medicines Initiatives £11m (BROMI) Phase 2 b) DWP Remove regulation requirering landlords £11m to provide information for backdating housing benefit claims HSe Sensible Risk Management - £18.4m DSE and Manual Handling MoJ Legal Aid- Implementation £0m £12.05m initially reported as validated of the Unified Contract in Summary Report 2008 but put forward to EVP09 on BRE’s decision MoJ Legal Aid Reforms-Civil Unified Contract £0m £15.6m initially reported as validated (Removal of Not for Profit Contract) in Summary Report 2008 but put forward to EVP09 on BRE’s decision totAL £121.3m SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 69
  • 70. Summary of 2009 validation In 2009, the Panel took a slightly different approach to increase the breadth of their scrutiny across the programme by making sure that each Department involved in the Administrative Burden Reduction Programme had been reviewed by the Panel, at least once, either in 2008 or in 2009. As a result, EVP09 reviewed and challenged: FIGURe 22: EVP - BRE/Department’s Review Gross May 2009 ABRP Gross Dec 2009 ABRP May 2009 Dec 2009 Savings delivery (£m) Savings delivery (£ms) £3,147m £3,921m nUMBeR oF totAL nUMBeR oF MeASUReS GRoSS (£M) DePtS 2008 Validated Validated £2,439m Any existing or new 26 £760.6m 10 £1,985m simplification measure with annual savings of over £10 million which had not yet been validated by the Panel. the largest simplification 5 £25.2m 6 measure for each Department or Agency with a small administrative burden baseline (less than £10m). Not Not EVP09 Validated Validated totAL RevIeWeD By evP09 31 £785.8m14 16 Validated £707m 1,480m £454m 77.5% validated 62.2% validated 14. This total value includes measures initially selected by the panel which were withdrawn during the scrutiny process (DCSF - Independent Schools (£18.1m) and DEFRA - The Animal Welfare Code of recommendations (£10m)) SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 70
  • 71. FIGURe 23: EVP09 Overview FIGURe 24: Result of 2009 validation totAL GRoSS % oF neW DeLIveRy totAL GRoSS SAvInGS to GRoSS MAy 09 % oF MAy 2009 (£M) PUt FoRWARD to MAy 09 RePoRteD In SP09 DeLIveRy vALIDAteD DeLIveRy vALIDAteD evP09 By eItHeR evP oR BRe/DePARtMentS Delivery validated by the evP09 £453.94m 57.8% AcRoSS tHe Delivery to be reported as £150.1m 19.1% PRoGRAMMe delivered but not validated £3,147m £2,438.64m 77.5% Delivery deferred by the Panel £181.8m 23.1% totAL GRoSS SAvInGS to GRoSS Dec 09 % oF Dec 2009 totAL GRoSS Dec 09 RePoRteD In SP09 DeLIveRy vALIDAteD DeLIveRy vALIDAteD (£M) By eItHeR evP oR BRe/DePARtMentS Gross May 09 delivery £3,146.5m AcRoSS tHe to be reported in SP09 PRoGRAMMe £3,921m £2,438.64m 62.2% totAL GRoSS % AcRoSS tHe (£M) PRoGRAMMe total May 05 – May 09 £2,438.62m 77.5% delivery either validated by evP or BRe/Departments totAL GRoSS (£M) Gross Dec 09 delivery £3,921m to be reported in SP09 SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 71
  • 72. FIGURe 25: Measures fully validated by EVP09 (figure continues on the next two pages) evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte vALUe vALIDAteD FInAL evP09 StAtUS DePt (MAy 09) (DePt) By evP (MAy 09) EVP09 1 BIS Dispute resolution £115m Jan-May 09 £115m Fully validated (ex BeRR) (Employment Law) EVP09 3b DWP Employers’ Liability £21m June-Dec 08 £21m Fully validated Compulsory Insurance certificates (Review) - Part 1&2 EVP09 5a BIS Simpler law for smaller £21.60m June-Dec 07 £21.60m Fully validated (ex BeRR) firms (Company Law and Accounting) EVP09 5b BIS (ex Simpler law for smaller £16.80m June-Dec 07 £16.80m Fully validated BeRR) firms (Company Law and Accounting) EVP09 7 cLG Delivering electronic £35m Jan-May 08 £35m Fully validated capability a) Standard Planning Application Form EVP09 9 HSe Manual Handling £32.50m Jan-May 09 £32.50m Fully validated Operations Regulations EVP09 11 cLG Delivering electronic £25m Jan-May 08 £25m Fully validated capability b) validity criteria EVP09 13 cLG Fire Safety RRO £21m June-Dec 06 £21m Fully validated EVP09 14 HSe Forms project (Removal £21m Jan-May 09 £21m Fully validated of 8 forms required by the Factories Act, Offices, Shops and Railway Premises Act (OSR Act)) EVP09 15 cLG E-Enablement of Building £20m June-Dec 08 £20m Fully validated Control Service EVP09 17 MoJ Legal Aid Reforms- £15.6m Jan-May 07 £15.6m Fully validated Implementation of the Civil Unified Contract (Removal of 3 data requirements from Not for Profit Contracts) SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 72
  • 73. evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte vALUe vALIDAteD FInAL evP09 StAtUS DePt (MAy 09) (DePt) By evP (MAy 09) EVP09 18 Dft Drivers’ Hours (3) £15.4m Jan-May 08 £15.4m Fully validated EVP09 19 Dft Introduction of digital £14.4m Jan-May 06 £14.4m Fully validated tachographs EVP09 20 cLG Delivering electronic £14m Jan-May 09 £14m Fully validated capability c) E-planning EVP09 21 MoJ Legal Aid- Implementation £9.4m Jan-May 08 £9.4m Fully validated of the Unified Contract (it is acknowledged that MoJ presented a cautious estimate of delivery to the Panel – MoJ now believe this measure to be delivering £12.05m) EVP09 23 HSe Health & Safety £10.7m Jan-May 09 £10.7m Fully validated Information for Employees Regulations- the HSE law poster/approved leaflet EVP09 24 Defra NetRegs £10m June-Dec 06 £10m Fully validated EVP09 26 onS Reduction to sample sizes £3.3m Jan-May 07 £3.3m Fully validated for a number of surveys EVP09 28 Forestry Plant Health £0.34m Jan-May 06 £0.34m Fully validated commission EVP09 29 DcSF Early years census £9.8m Jan-May 09 £9.8m Fully validated SUBtotAL £431.84m £431.84m SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 73
  • 74. FIGURe 26: Measures partially validated by EVP09 evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte vALUe vALIDAteD FInAL evP09 StAtUS DePt (MAy 09) (DePt) By evP (MAy 09) EVP09 10 Home Points Based System £25m Jan-May 08 £12.5m Partially validated - office (PBS) for Work Permits delivery which can be reported as delivered but unvalidated in SP09 EVP09 22 Dft Introduction of electronic £10.7m Jan-May 06 £9.6m Partially validated - vehicle licensing (EVL) delivery which can be reported as delivered but unvalidated in SP09 SUBtotAL £35.7m £22.1m FIGURe 27: Measures for which savings can be reported as delivered but unvalidated in SP09 (figure continues on the next page) evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte SAvInGS WHIcH FInAL evP09 StAtUS DePt (MAy 09) (DePt) cAn Be cLAIMeD In SP 09 BUt AS UnvALIDAteD EVP09 3a DWP Employers’ Liability £37m June-Dec 08 £37m To be reported as Compulsory Insurance delivered but unvalidated certificates (Review) - Part 1&2 EVP09 4 cLG Householder Development £45m Jan-May 09 £6.3m To be reported Consents Review (HDCR) as delivered but unvalidated15 EVP09 6 HSe Good practice on worker £36.6m June-Dec 08 £36.6m To be reported as involvement delivered but unvalidated EVP09 8 HSe Lifting Operations £33m June-Dec 08 £33m To be reported as & Lifting Equipment delivered but unvalidated Regulations and Provision & Use of Work equipment Regulations 15. EVP09 concluded that it was too early to validate savings for this measure. BRE subsequently agreed CLG’s reporting of £15 million minimum savings at May 2009. SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 74
  • 75. evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte SAvInGS WHIcH FInAL evP09 StAtUS DePt (MAy 09) (DePt) cAn Be cLAIMeD In SP 09 BUt AS UnvALIDAteD EVP09 12 Defra Common Agricultural £21.20m June-Dec 05 £21.20m To be reported as Policy Single Payment delivered but unvalidated and Support Schemes Regulations 2005 EVP09 27 charity Trustees Annual Report £2.4m Jan-May 07 £2.4m To be reported as commission (TAR) (i) Changes to delivered but unvalidated Registration threshold in 2006 Act, (ii) Increase in Audit threshold in 2006 Act SUBtotAL £175.2m £136.5m FIGURe 28: Measures withdrawn from EVP09 process evP ReF DePt SIMPLIFIcAtIon nAMe vALUe cLAIMeD By IMPLeMentAtIon DAte vALUe WItHDRAWn FInAL evP09 StAtUS DePt (MAy 09) (DePt) EVP09 16 DcSF Independent Schools: £18.1m Delayed £18.1m Withdrawn 10 information obligations (package) EVP09 25 Defra Animal Welfare Code £10m Delayed £10m Withdrawn of Recommendations SUBtotAL £28.1m £28.1m SECTION 4 | Annex B: External Validation Panel May 2005 – May 2009 75
  • 76. Annex C The Measurement Process: The International Standard Cost Model Methodology The measurement of There were two key stages Stage 1 methodology does not set out administrative burdens was a to reaching the original to achieve a statistically robust Measurement substantial and complex administrative burdens baseline: estimate of administrative costs, undertaking involving Administrative costs are the as this requires a huge sample • the initial measurement of annual reoccurring costs of Departments and regulators size, incurring disproportionate administrative costs; and administrative activities that across government, co-ordinated expense. by the Better Regulation businesses and the third sector • calculating from the are required to perform in order Instead, it provides a systematic Executive. The original initial measurement the to comply with the obligations that approach to measurement that measurement was carried out administrative burden by are imposed through central provides indicative data on the between May 2005 and May 2006 applying a business as Government regulation. These administrative costs of regulation. and the results form the usual adjustment. include, for example, form filling, International experience has administrative burdens baseline keeping records or responding to shown this approach to be as of May 2005. It was against this information requests. valuable in understanding the baseline that each participating regulatory landscape and focus organisation agreed to a net The measurement of the in simplification activity. The administrative burden reduction administrative costs of regulation Standard Cost Model methodology target of 25%, to be achieved by impacting business and the third breaks down regulations into a 2010 (except for Cabinet Office, sector was undertaken using the range of manageable who chose a 35% target). Standard Cost Model components. This enables the methodology, as recommended systematic measurement of the by the Better Regulation Task cost of regulation across Force. The Standard Cost Model SECTION 4 | Annex C: The Measurement Process 76
  • 77. Government through extensive The Standard Cost Model Multiplying the time and Wage interviews and focus groups with calculates the administrative Rate provides the Unit cost of individual businesses, charities costs arising from a regulation the obligation. Multiplying the and voluntary sector by measuring four key factors: Population and Frequency organisations. provides the Quantity. The Unit • how long it takes to comply cost and the Quantity are then These components are called with the obligation (time); multiplied to establish the obligations. An obligation is the • the wage rate of the person who Administrative cost. This specific requirement that must undertakes this (Wage Rate); has been illustrated below: be undertaken in order to comply with a regulation. • how many organisations carry FIGURe 29: SCM formula out the obligation (Population); All central Government and regulations were mapped. Unit cost* x Quantity The responsible Government • how frequently (each year) Department and the origin of the the obligation is carried out (Time x Wage Rate) x (Population x Frequency) regulation were then identified, (Frequency) the required obligations defined, * including external costs and the costs measured. SECTION 4 | Annex C: The Measurement Process 77
  • 78. The Unit Costs also includes any Departments have continued The administrative burden The process to estimate suitable overheads or external goods or to measure the administrative is defined as the cost of business as usual adjustments services required in order to burden of regulations introduced administrative activities over was carried out with the full comply with the obligation within since May 2005 using the same and above what a business would support and assistance of the the regulation. approaches outlined above in choose to do in the absence of the business community and the third order to report progress on their regulation. The business as usual sector. An independent panel The cost, quantity, population and net reduction targets. This year’s approach is about focusing agreed the business as usual frequency elements of the plans reflect the administrative Government’s reduction effort process and methodology and calculation were estimated using burden of any regulations on the burdens that are of real determined what activity business input from businesses or business introduced between June 2005 concern to business. There is would do in the absence of associations. and December 2009. little benefit to business from regulation. Data from the This was done through extensive simplifying activities that business measurement exercise was used face-to-face interviews, telephone Stage 2 has indicated they would choose as a basis to calculate indicative interviews, expert panels, virtual Adjusting for to undertake even if the regulation estimates for this activity for all panels and assessment with business as usual did not exist. information obligations. The Panel consistent validation through then considered and challenged Once the measurement exercise Monitoring Groups consisting of data for the information had established the administrative key stakeholders to advise and obligations that made up 70% costs of regulation, the challenge the results. of the total administrative cost. Government applied a pragmatic Government Departments and credible process to estimate commissioned Pricewaterhouse the percentage of the total Coopers to carry out this administrative costs that consist measurement, which involved of activities that business would over 8,500 interviews and over 200 do anyway. This is termed the expert panels. All of the regulation business as usual cost. that was in force as of May 2005 Subtracting the business as usual represented the original cost from the total administrative administrative burden baseline. cost estimate gives an estimate of the administrative burden. SECTION 4 | Annex C: The Measurement Process 78
  • 79. Annex D Baseline Adjustments The measurement of However, there have been a Criteria for technical administrative burdens was number of baseline changes adjustments to the baseline carried out from May 2005 and since May 2005: Baseline adjustments completed in May 2006 and the • to reflect any Machinery should be approved if there results form the administrative of Government changes is overwhelming evidence burden baseline as of May 2005. which could lead to individual that a significant error has It was against this baseline that regulations transferring been made to the following each participating Department, between Departments; and categories: regulator or agency involved in this programme agreed to a net • to correct any errors made • regulation(s) that should administrative burden reduction by the initial measurement have been measured, but target of 25% to be achieved by exercise. were not; and May 2010 (except Cabinet Office who agreed a target of 35%). • population information, external goods or services, internal time or wage rate, or business as usual factors have been significantly over or under estimated. SECTION 4 | Annex D: Baseline Adjustments 79
  • 80. 2009 Baseline adjustments The Departments for which baseline adjustments have been made in 2009 are outlined below. FIGURe 30: Technical and Machinery of Government changes DePARtMent BASeLIne At MAcHIneRy oF tecHnIcAL BASeLIne At DeceMBeR 2008 GoveRnMent ADJUStMentS DeceMBeR 2009 cHAnGeS BeRR £4,068m -£4,068m (1&3) £0m DIUS £543m -£543m (1) £0m BIS £0m £4,532m (1) -£44.3m (2) £4,489m Decc 78.3m (3) -£2.7m (4) £76.97m MoJ £369.4m -£13.47m (5) £356m 1. Machinery of Government 2. BIS made a net baseline 3. Machinery of Government 5. MoJ made a baseline change resulted in £78.3m adjustment by removing change resulted in transferring adjustment removing a total of transferring from BERR to a total of £44.3 million from DEFRA (0.2m) and BERR £13.4 million relating to probate DECC. This left BERR with including the Companies Act (78.3m) to DECC. and letters of administration, a baseline of £3,990m. 2006; Insolvency (Amendment) data protection and accounts 4. DECC made a baseline Subsequent Machinery of Rules 2009; The Legislative rules for solicitors and adjustment of £2.7 million to Government changes resulted Reform Order (Insolvency) registered foreign lawyers. transfer back to BIS (ex-BERR) in transferring £3,990m from (Miscellaneous Provisions) an information obligation BERR and £543m from DIUS Order 2009; and Export relating to Export Control. to the newly formed BIS. Control; and DRID 1955 Employment Agencies Estate Agents (Accounts) Regulations 1981. SECTION 4 | Annex D: Baseline Adjustments 80
  • 81. FIGURe 31: 2009 Departmental baseline and target DePARtMent BASeLIne (£M) tARGet (£M) tARGet (%) % totAL BASeLIne BIS £4,489.0 £1,122.3 25% 34.16% cLG £2,486.5 £621.6 25% 18.92% HSe £2,022.5 £505.6 25% 15.39% DH £1,201.9 £300.5 25% 9.15% Dft £585.0 £146.3 25% 4.45% DWP £471.0 £117.8 25% 3.58% Defra £458.2 £114.6 25% 3.49% MoJ £356.0 £89.0 25% 2.71% DcMS £343.2 £85.8 25% 2.61% DcSF £209.7 £52.4 25% 1.60% HMt £158.9 £39.7 25% 1.21% Food SA £90.5 £22.6 25% 0.69% Home office £83.0 £20.8 25% 0.64% onS £48.7 £12.2 25% 0.37% charity £36.6 £9.2 25% 0.28% commission cabinet office £15.4 £5.4 35% 0.12% Geo £5.7 £1.4 25% 0.04% Forestry £1.46 £0.4 25% 0.01% commission Decc £76.97 £19.216 N/A N/A totAL £13,140.3 £3,286.6 16. 25% of baseline indicated for completeness: no simplification target was set for DECC due to its late inclusion in the Programme (October 2008). SECTION 4 | Annex D: Baseline Adjustments 81
  • 82. URN 09/P69