Presentation by Rachel Holloway, Department for Business, Energy, & Industrial Strategy, United Kingdom, at the RIA workshop which took place in Lima on 22-24 May 2017. Further information is available at www.oecd.org/gov/regulatory-policy/.

1. Defining the problem: UK
Rachel Holloway
Regulatory Delivery

2. Problem definition and RIA
What it is & why is it so important?
• A RIA starts by confirming whether a problem exists,
identifying its scale and who is affected, assessing the
cause(s) and consequences, and whether it would continue
in the absence of Government intervention.
• The answer to this analysis should give you the information
needed to decide whether there is a problem for which a
policy response may be warranted.
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Step 1: Define the problem

3. • Governments should only regulate when necessary and in a
proportionate manner. High quality policy proposals are
built on a clear problem definition and understanding of
the underlying factors and behaviour.
• A problem can be caused by several factors - market
failure, the need to correct a socially undesirable outcome
etc. You should consider whether the problem is real or
perceived.
• Two key questions need to be answered:
1. How much does the ‘problem’ affect peoples’ daily
lives?
2. Whose behaviour would have to change for the
situation to improve?
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Approach to defining the problem

4. Answering these questions will ensure your analysis is
focused, close to stakeholders’ concerns and mindful of the
practical implications of any initiative.
You should try & understand the scope of the issue:
1.Evidence about the nature of the problem.
2.The probability that it will occur and its likely frequency.
3.Who it will impact on.
4.Who is best placed to manage/resolve the problem.
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Approach to defining the problem

5. The RIA Process: Is there a
problem?
Identify
the
problem
1.A RIA starts by confirming whether a problem exists,
identifying its scale and who is affected, assessing the
cause(s) and consequences, and whether it would
continue in the absence of Government intervention.
2.The answer to this analysis should give you the
information needed to decide whether there is a problem
for which a policy response may be warranted.
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Step 1

6. The RIA Process: Checklist to define
the problem
Checklist
1.Confirm there is a problem
2. If there is a problem, identify it clearly
3. Consult relevant experts (e.g. Economists, academics)
4. Assess the scale of the problem
5. Consider who is best placed to manage / resolve the
problem (e.g. Government, the markets, the Unions)
Identify
the
problem
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Step 1

7. Linking to objectives: SMART
Specific
Objectives should be precise and solid enough not to be open to varying
interpretations by different people.
Measurable
Objectives should define a desired future state in measurable terms, to allow
verification of their achievement. Such objectives are either quantified or
based on a combination of description and scoring scales.
Achievable
Policy aims must be set at a level, which is ambitious but at the same time
realistically achievable.
Relevant The objectives should be directly linked to the problem and its root causes.
Time- Bound
Objectives should be related to a fixed date or precise time period to allow an
evaluation of their achievement.
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8. Step 1 -What is the problem?
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..... by assembling all the relevant
information that we have. We need to
identify the gaps in our understanding.
Being precise
and specific in
explaining the
problem usually
leads to better
results
The RIA Process

9. Iterative 2007-2016
What is the problem under consideration? Why is
government intervention necessary?
• The Hampton Report (Reducing Administrative Burdens:
effective inspection and enforcement, HM Treasury:
2005) raised two issues regarding the enforcement of
regulation by local authorities:
a) Inconsistency. The existing, diffuse, structure of local
authority regulation increases uncertainty and
administrative burdens for business who are required to
deal with different approaches throughout the country
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10. Iterative
What is the problem under consideration? Why is
government intervention necessary?
b) Lack of co-ordination: the lack of a central
communications function results in duplication of effort at
local level, and overall approaches which are insufficiently
strategic.
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11. What is the problem under consideration? Why is
government intervention necessary?
• The diffuse structure of local authority regulatory services
means that businesses frequently face problems associated
with inconsistency of enforcement. Part 2 of the Regulatory
Enforcement and Sanctions Act 2008 (the Act) created the
framework for the Primary Authority scheme, which is
designed to ensure coordinated, consistent and
proportionate local authority regulatory enforcement for
those organisations that operate across more than one local
authority.
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12. What is the problem under consideration?
Why is government intervention necessary?
•Part 2 of the Act contains a number of order-
making powers which are necessary to ensure
the practical effectiveness of the scheme. This
Impact Assessment details the application of
the Primary Authority scheme.
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13. What is the problem?

14. The drivers for Primary Authority
The Regulatory
Enforcement
and Sanctions
Act 2008
‘Next steps
on regulatory
reform’ 2007
The Hampton
Review, ‘Reducing
administrative
burdens: effective
inspection &
enforcement’ 2005
The Macrory Review,
‘Regulatory justice:
making sanctions
effective’ 2006

15. The journey towards consistency
• Business perceptions of regulation – poor and the
government wanted to change this
• Businesses (generally) understood that some regulation is
necessary but were unhappy with the way in which it was
enforced anecdotally
o Confidence
o Level playing field
o Protections / reduced risks
o Prosperity and growth

16. What did we want to achieve?
• A new relationship between local regulators and
business, built on
• Expertise
• Understanding
• Reassurance
• Improvements in regulator efficiency &
effectiveness
• Improved protections

17. The idea of Primary Authority
brings together two objectives
• Businesses want good regulation that gives them
confidence to prosper and reduces risks
and
• Government wants to promote economic growth,
provide business support and ensure protections