Summary of
Simplification
Plans 2009
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
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
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
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
SECTION 1

Summary


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




                                           6
Chapter 1

Executive Summary

The Administrative Burden                         environment, which is fair and     Since the beginning of the         Public sector organisations
Reduction Programme –                             proportionate and responds to a    Administrative Burden Reduction    also face administrative
saving businesses time and                        rapidly changing global economy.   Programme in 2005, the             burdens. In 2009 there has
money by reducing red tape.                                                          Government has implemented         been real progress on reducing
                                                  The Administrative Burden
                                                                                     280 separate simplification        the number of information
Effective and evidence-based                      Reduction Programme, part
                                                                                     measures to reduce the time        requests and on reducing the
regulations can play a critical role              of the UK’s Regulatory Reform
                                                                                     and money businesses, charities    burden of information requests
in correcting market failures, and                Agenda, identifies, simplifies
                                                                                     and the public sector spend on     from central Government to
provide essential protections for                 and sometimes removes the
                                                                                     administration.                    public sector organisations.
the general public.                               administrative burden placed
                                                                                                                        These reductions are a positive
                                                  on organisations to demonstrate    Her Majesty’s Revenue and
The Better Regulation Agenda                                                                                            and tangible step in reducing
                                                  they are complying with            Customs (HMRC) is also
encourages Government to cut                                                                                            bureaucracy for the public
                                                  regulations.                       committed to reducing the
unnecessary bureaucracy and                                                                                             sector front line.
                                                                                     administrative burden of tax
out of date regulations – making                  The Government is committed
                                                                                     regulation and has been set
life simpler for businesses, third                to reducing the administrative
                                                                                     separate reduction targets by
sector organisations and the                      burden faced by business and
                                                                                     the Chancellor. Details of this
public sector front line.                         the third sector by 25% by May
                                                                                     programme can be found on
                                                  2010, and expects to deliver
In the current economic climate it                                                   the HMRC website1.
                                                  approximately £3.3 billion net
is particularly important to make
                                                  annual savings. By December
sure that Government creates a
                                                  2009 Government has delivered
world-leading regulatory
                                                  £2.9 billion net annual savings
                                                  towards this target.



1. http://www.hmrc.gov.uk/budget2009/new-relationship-605.pdf                                                          SECTION 1 | Chapter 1: Executive Summary   7
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
What is this report                                • influencing Europe and other
                                                     international organisations
about?
                                                     to promote a culture of better
This document provides a                             regulation, ensuring that the
summary of the Government’s                          UK economy will benefit; and
progress towards delivering 25%
net reduction in administrative                    • minimising the policy burdens
burdens since the beginning of                       and key irritants faced by
the Programme in May 2005,                           businesses. To date,
with a particular focus on                           £1.19 billion gross annual
progress over the past year.                         policy savings have been made.

This summary also reports on                       You can find more information
the Government’s progress in                       on individual Departments’
delivering wider simplifications.                  achievements in their
It describes the Government’s                      Simplification Plans, which are
achievements in:                                   published on the BIS website2.

• reducing the number of
  information requests from
  central Government to public
  sector frontline workers by
  30%. By December 2009 a
  30.8% reduction of information
  requests has been delivered,
  with further delivery expected
  by May 2010;


2. http://www.berr.gov.uk/whatwedo/bre/policy/simplifying-existing-regulation/simplification-plans/page44063.html   SECTION 1 | Chapter 1: Executive Summary   9
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
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
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
SECTION 2

Administrative Burden
Reduction Programme

Chapter 1 Year 4: Progress so far
Chapter 2 The Third Sector
Chapter 3 Helping Small Businesses




                                     13
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
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
• 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
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
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
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
FIGURe 3: Top Simplification Measures (by £ million value) since beginning of Programme (figure continues on the next page)

 SIMPLIFIcAtIon         DeScRIPtIon oF SAvInGS                                                AnnUAL GRoSS SAvInGS
 MeASUReS                                                                                     At DeceMBeR 2009

 BIS                    The Employment Law Guidance Programme reduces the                             £418m
 Employment Guidance    administrative burdens imposed by employment law. The Guidance
                        Programme has produced free-to-use and legally-compliant online
                        tools, pro-forma letters and agreement forms, accessible through
                        www.businesslink.gov.uk
                        (£418m validated by the External Validation Panel as at May 2008)
 BIS                    Provides a simpler legal framework, to protect consumers from                 £309m
 Business to consumer   unfair practices, with a more level playing field for business.
 advertising and
                        (Not yet validated by External Validation Panel)
 marketing rules:
 Transposition of the
 Unfair Commercial
 Practices Directive
 HSe                    Easy to follow examples of risk assessment for 34 lower risk                  £235m
 Example Risk           businesses including convenience stores, dry cleaners and
 Assessments            hairdressing salons.
                        (£163.3m validated by External Validation Panel as at May 2008)
 cLG                    Reducing the number of licences required by landlords for low risk            £207m
 Repeal of part XI of   multiple occupancy households (partially offset by burden of £87m
 Housing Act 1985       from new licensing regime).
                        (£207m validated by the External Validation Panel as at May 2008)
 BIS                    1.2m companies can now send information including annual                      £182m
 Electronic             reports to shareholders by email, rather than hard copy.
 communication
                        (£76m validated by External Validation Panel as at May 2008)
 with shareholders
 DcMS                   This Act reformed the alcohol and entertainment licensing laws               £181.1m
 Licensing Act 2003     in Britain into a single piece of legislation.
                        (£181.1m validated by the External Validation Panel as at May 2008)




                                                                                                                     SECTION 2 | Chapter 1: Year 4: Progress so far   20
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
HSE
Risk Assessment
"When I talk about what a risk assessment is,
I use a printed copy of the HSE's guide and
take people through it to establish good practice.
“The language is right because it’s everyday basic language.
And the presentation is very good. So they can go through it         BIS
and do their own assessment properly. For small, voluntary
organisations, that’s really important.
                                                                     Employment Guidance
                                                                     Government has transformed the guidance that it provides on
“One group even wrote to us recently to thank us for making          Employment Law. Guidance is now simple, easy to follow and
the process so much easier.”                                         allows employers to take on new employees with confidence.
eamon McGraph, community Development Manager,                        The guidance focuses on particular areas of Employment Law
Age concern norfolk                                                  which businesses found the most burdensome or complex. The
Day centres play a valuable role in the lives of many older people   guidance available at Business Link (www.businesslink.gov.uk/
but like any workplace they carry certain health and safety risks.   employingpeople) covers all aspects of employers’ obligations,
                                                                     and includes free access to interactive tools and documents that
According to Eamon McGrath, the problem of assessing those           are quick and easy to use.
risks is now much easier, thanks to the Health and Safety
Executive’s website and their online tool, five steps to risk        This has helped save businesses an estimated annual
assessment on www.hse.gov.uk/business/risk.htm                       £418 million in administrative burdens. BIS is now making this
                                                                     guidance available directly to businesses in the form of a simple
HSE produces 34 example risk assessments for different               desktop download that sets out clearly their obligations
types of low-risk organisations which bring combined savings         throughout the employment lifecycle - from recruitment,
of £235 million per year.                                            to retention and leaving.



                                                                                                    SECTION 2 | Chapter 1: Year 4: Progress so far   22
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
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
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
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
In 2008, the EVP chose to               In 2009, the Panel took a slightly
   Defra                                                                 scrutinise the top simplification
                                                                         measures Government
                                                                                                                 different approach to increase
                                                                                                                 the breadth of their scrutiny of
   NetRegs                                                               Departments implemented                 the programme; by making sure
   NetRegs (www.netregs.gov.uk) is a web-based service offering          between May 2005 and May                that each Department involved
   clear, reliable guidance to UK businesses on how to comply with       2008, covering over 80% of the          in the Administrative Burden
   environmental legislation and reduce their environmental              reported gross annual savings.          Reduction Programme had
   impacts. It provides free up-to-date guidance specifically tailored   Departments were made                   been reviewed by the Panel, at
   to the needs of small and medium sized enterprises (SMEs). It         responsible for the scrutiny            least once. As a result, 77.5%
   also serves a wide range of business advisory bodies and trade        of smaller measures.                    of the Programme’s total gross
   associations across the UK. The guidance covers 36 categories                                                 savings delivery to May 2009
                                                                         Following the Panel’s review,
   of environmental topics and over 110 business sectors.                                                        was validated.
                                                                         gross savings of an estimated
   In a July 2009 user survey, 94% of businesses rated it as a ‘good’    £1.86 billion were validated,           The External Validation Panel
   or ‘excellent’ business tool.                                         covering 87% of reported delivery       will meet again in Summer
                                                                         up to May 2008.                         2010 to review and validate final
   The EVP validated £10 million of savings from the NetRegs                                                     delivery across the Programme,
   programme (which should rise to £12.5 million by 2010) and            To complement this scrutiny,
                                                                                                                 taking into account the savings
   held up NetRegs as a good example which was well-evidenced            Departments and the BRE carried
                                                                                                                 realised since May 2009.
   to demonstrate that it brings real savings and improvements           out their own validation exercises
   to business.                                                          on smaller simplification
                                                                         measures (over £10 million) so that
                                                                         overall 92% of reported delivery to
                                                                         May 2008 had been verified.


“The External Validation Panel provides a necessary credibility check to the administrative
 burden savings that Government Departments claim. The CBI is pleased to have played a
 part in scrutinising this year’s claims against the experiences of business.”
 Lucy Findlay, Confederation of British Industry


                                                                                                             SECTION 2 | Chapter 1: Year 4: Progress so far   27
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
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
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
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
Making Employment                     The Department for Business,
23,000 Small Charities Benefit                              Law Easier                            Innovation and Skills (BIS) and the
                                                                                                  OTS have made a specific effort in
Benefits to a typical small charity with annual             Regulations such as employment        2009 to help ensure that third
income of £10 - £25,000                                     law impact as much on the third       sector employers have better
                                                            sector as other sectors. It can       access to the latest employment
1. Need only complete part of Annual Return form.           be challenging to keep up to date     guidance through Business Link,
2. No longer required to be subject to external scrutiny    with changes to employment law        which has brought £418 million of
   (independent examination or audit).                      which is why the Office of the        annual savings to employers in all
3. No longer need to routinely submit accounts and          Third Sector (OTS) is launching       sectors. This information will be
   Trustees Annual Reports to the Charity Commission.       a Law & Regulation web portal.        available on the OTS Law &
                                                            This online service provides a        Regulation web portal by
4. More accessible, consistent advice and guidance          summary of regulatory changes
   via Charity Commission Direct http://www.                                                      December 2009.
                                                            which have an impact on the sector.
   charitycommission.gov.uk/Library/tcc/pdfs/ccdirect.pdf
5. Easier and more convenient way to update
   registration details online.
6. Some charities will benefit from a simplified process:
   • for spending small amounts of capital;
   • to facilitate mergers; and
   • to streamline trustee indemnity insurance and
     trustee payments for the provision of services.
7. Stronger influence through partnership work with
   small to medium charity umbrella bodies.
This represents over £1.66 million of savings.



                                                                                                   SECTION 2 | Chapter 2: The Third Sector   32
Wider Simplification
   BIS                                                                                               Reducing Funding & Monitoring Burdens
   Employment Law Organiser:                                                                         Funding and monitoring is often highlighted as imposing the most
   Better access to advice guidance                                                                  burden on the third sector.

   The Department for Business, Innovation and Skills (BIS) has                                      In 2009 the Office of the Third Sector published ‘Principles of
   launched a free desktop tool.                                                                     Proportionate Monitoring’5 and collaborated with the National Audit
                                                                                                     Office to publish ‘Intelligent Monitoring’6. These reports encourage
   Employment Law Organiser provides a summary of the key                                            Government Departments to take account of the third sector in
   obligations that every employer in a small to medium sized                                        creating less burdensome monitoring regimes.
   enterprise (SME) needs to meet – from small business managers
   to charity directors – and includes links through to the relevant                                 A number of Departments including DCSF, DfT and MoJ have
   free guidance on the Business Link website.                                                       embedded the principles of these reports into grant-making practices.
                                                                                                     This will begin to benefit third sector organisations in 2009 to 10.
   As many third sector organisations don’t have a dedicated HR team
   to help out, the new tool will make it much simpler for bosses to
   comply with their obligations, saving them time and money.
   Sitting as an icon on a PC desktop, Employment Law Organiser
   can be opened quickly and used when needed.
   The Employment Law Organiser will be automatically updated as
   and when new legislation is introduced helping employers keep up
   to date with their obligations.
   Employment Law Organiser is in addition to the £418 million
   of savings delivered through the employment law guidance
   programme.
   www.businesslink.gov.uk/employmentlaworganiser



5. http://www.cabinetoffice.gov.uk/media/216752/principles.pdf
6. http://www.nao.org.uk/guidance_and_good_practice/toolkits/intelligent_monitoring.aspx?alreadysearchfor=yes                              SECTION 2 | Chapter 2: The Third Sector   33
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
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
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
BIS                                                                  2. Reducing Administrative Burden
   Company Law                                                             on existing regulations
   "As a designated member in a husband and wife                        The Health and Safety Executive (HSE) has introduced new help for
   Limited Liability Partnership (LLP), I just                          SMEs. A risk assessment and policy template has been developed
   wanted to say thank you so much for the clear                        for lower risk SMEs. This template combines the requirements of
                                                                        a risk assessment, health and safety policy and written record of
   drafting of the new LLP Application of                               health and safety arrangements into one document, saving time,
   Companies Act 2006.                                                  resources and costs.
   “Your approach of taking the relevant sections of the 2006 Act       The template was launched on 1 September 20097.
   and restating them in full as they apply to Limited Liability
   Partnerships is SO HELPFUL! I know the Government was trying
   to “think small” in terms of the drafting and implementation of      3. Improving Guidance
   the Companies Act 2006, but I was a bit concerned that there
   would be all sorts of difficult consequential changes for LLPs,      The Government has an ongoing programme to improve
   however I think you have now avoided this.                           employment guidance, specifically in relation to small businesses.
                                                                        One innovation has been the development of a new desktop tool,
   “What you did with the Small LLP Accounts Regulations was
                                                                        the Employment Law Organiser,8 which includes all the facts
   also very helpful in restating the full requirements. Also, the
                                                                        small businesses need to know regarding employment law. It
   whole approach of giving clear implementation dates well
                                                                        provides small businesses with access to advice and tools, is
   ahead is really helpful.”
                                                                        updated as and when new legislation comes through and has a
   Dr Gareth G Morgan, the Kubernesis Partnership                       calendar function that acts as a reminder for small businesses.

   These changes have brought £900,000 savings for businesses,
   as part of £390 million wider savings from changes to
   company law.


7. http://www.hse.gov.uk/risk/risk-assessment-and-policy-template.doc
8. www.businesslink.gov.uk/employmentlaworganiser                                                  SECTION 2 | Chapter 3: Helping Small Businesses   37
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
BIS
The National Measurement Office
Self-verification of equipment                                      BIS
"Like all responsible businesses we strive to                       Employment Law Tools
reduce our carbon emissions and the changes have                    " It is important to be on top of how to manage
enabled us to test, adjust and verify in one visit.                 your employment obligations if you want to be a
This has allowed us to make better use of our                       successful and competitive business. As a small
resources overall including a reduction in costs in                 business, you have to watch every penny and get
excess of £200,000. Our customers also benefit                      as much support as possible. I subscribe to the
from the single visit, through reduced charges,                     Business Link newsletter service and look at
less disruption, and not having inaccurate                          the site.
dispensers out of action."                                          “The tools on the site are very useful and simple to use.
Michael Hollier, MD, Retail & Forecourt Solutions Ltd               When I need specific advice I will turn to the professionals but
                                                                    do a lot of the groundwork myself, and using the site isn’t time
"This will benefit the nine and a half thousand                     consuming or complicated.
fuel retail sites in the UK, at least seven and                     “We often employ part-time staff and being up to date with the
a half [thousand] of these being small to                           latest in employment law and legislation helps us to be confident
medium-sized enterprises."                                          when it comes to recruitment decisions.”
A spokesperson from the Petrol Retailers’ Association               John charles, catering2order

Manufacturers, installers and repairers of trade equipment          John Charles established Catering2Order in 2007 and now
are now able to self verify after they have adjusted equipment      employs 15 staff. Since the early stages of setting up his
to improve its accuracy.                                            business, he has used many of the tools available on
                                                                    www.businesslink.gov.uk
This change has mainly benefitted petrol and diesel retailers
whose equipment is subject to quite frequent repair. It has saved   Improvements to employment law guidance have saved
the retail fuel industry approximately £615,000 a year.             businesses £418 million a year.



                                                                                                SECTION 2 | Chapter 3: Helping Small Businesses   39
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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. http://www.berr.gov.uk/files/file53252.pdf                                                    SECTION 3 | Chapter 3: Reducing policy burdens and irritants   55
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
www.betterregulation.gov.uk
URN 09/P69

Page 36 Better Regulation Berr 1

  • 1.
  • 2.
    Contents (page 1of 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 2of 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 thePrime 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 theSecretary 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 1Executive Summary Chapter 2 Better Regulation – what next? 6
  • 7.
    Chapter 1 Executive Summary TheAdministrative Burden environment, which is fair and Since the beginning of the Public sector organisations Reduction Programme – proportionate and responds to a Administrative Burden Reduction also face administrative saving businesses time and rapidly changing global economy. Programme in 2005, the burdens. In 2009 there has money by reducing red tape. Government has implemented been real progress on reducing The Administrative Burden 280 separate simplification the number of information Effective and evidence-based Reduction Programme, part measures to reduce the time requests and on reducing the regulations can play a critical role of the UK’s Regulatory Reform and money businesses, charities burden of information requests in correcting market failures, and Agenda, identifies, simplifies and the public sector spend on from central Government to provide essential protections for and sometimes removes the administration. public sector organisations. the general public. administrative burden placed These reductions are a positive on organisations to demonstrate Her Majesty’s Revenue and The Better Regulation Agenda and tangible step in reducing they are complying with Customs (HMRC) is also encourages Government to cut bureaucracy for the public regulations. committed to reducing the unnecessary bureaucracy and sector front line. administrative burden of tax out of date regulations – making The Government is committed regulation and has been set life simpler for businesses, third to reducing the administrative separate reduction targets by sector organisations and the burden faced by business and the Chancellor. Details of this public sector front line. the third sector by 25% by May programme can be found on 2010, and expects to deliver In the current economic climate it the HMRC website1. approximately £3.3 billion net is particularly important to make annual savings. By December sure that Government creates a 2009 Government has delivered world-leading regulatory £2.9 billion net annual savings towards this target. 1. http://www.hmrc.gov.uk/budget2009/new-relationship-605.pdf SECTION 1 | Chapter 1: Executive Summary 7
  • 8.
    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 thisreport • influencing Europe and other international organisations about? to promote a culture of better This document provides a regulation, ensuring that the summary of the Government’s UK economy will benefit; and progress towards delivering 25% net reduction in administrative • minimising the policy burdens burdens since the beginning of and key irritants faced by the Programme in May 2005, businesses. To date, with a particular focus on £1.19 billion gross annual progress over the past year. policy savings have been made. This summary also reports on You can find more information the Government’s progress in on individual Departments’ delivering wider simplifications. achievements in their It describes the Government’s Simplification Plans, which are achievements in: published on the BIS website2. • reducing the number of information requests from central Government to public sector frontline workers by 30%. By December 2009 a 30.8% reduction of information requests has been delivered, with further delivery expected by May 2010; 2. http://www.berr.gov.uk/whatwedo/bre/policy/simplifying-existing-regulation/simplification-plans/page44063.html SECTION 1 | Chapter 1: Executive Summary 9
  • 10.
    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 ReductionProgramme 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 May2009 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 belowillustrate 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 – DisputeResolution 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: TopSimplification Measures (by £ million value) since beginning of Programme (figure continues on the next page) SIMPLIFIcAtIon DeScRIPtIon oF SAvInGS AnnUAL GRoSS SAvInGS MeASUReS At DeceMBeR 2009 BIS The Employment Law Guidance Programme reduces the £418m Employment Guidance administrative burdens imposed by employment law. The Guidance Programme has produced free-to-use and legally-compliant online tools, pro-forma letters and agreement forms, accessible through www.businesslink.gov.uk (£418m validated by the External Validation Panel as at May 2008) BIS Provides a simpler legal framework, to protect consumers from £309m Business to consumer unfair practices, with a more level playing field for business. advertising and (Not yet validated by External Validation Panel) marketing rules: Transposition of the Unfair Commercial Practices Directive HSe Easy to follow examples of risk assessment for 34 lower risk £235m Example Risk businesses including convenience stores, dry cleaners and Assessments hairdressing salons. (£163.3m validated by External Validation Panel as at May 2008) cLG Reducing the number of licences required by landlords for low risk £207m Repeal of part XI of multiple occupancy households (partially offset by burden of £87m Housing Act 1985 from new licensing regime). (£207m validated by the External Validation Panel as at May 2008) BIS 1.2m companies can now send information including annual £182m Electronic reports to shareholders by email, rather than hard copy. communication (£76m validated by External Validation Panel as at May 2008) with shareholders DcMS This Act reformed the alcohol and entertainment licensing laws £181.1m Licensing Act 2003 in Britain into a single piece of legislation. (£181.1m validated by the External Validation Panel as at May 2008) SECTION 2 | Chapter 1: Year 4: Progress so far 20
  • 21.
    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 Italk about what a risk assessment is, I use a printed copy of the HSE's guide and take people through it to establish good practice. “The language is right because it’s everyday basic language. And the presentation is very good. So they can go through it BIS and do their own assessment properly. For small, voluntary organisations, that’s really important. Employment Guidance Government has transformed the guidance that it provides on “One group even wrote to us recently to thank us for making Employment Law. Guidance is now simple, easy to follow and the process so much easier.” allows employers to take on new employees with confidence. eamon McGraph, community Development Manager, The guidance focuses on particular areas of Employment Law Age concern norfolk which businesses found the most burdensome or complex. The Day centres play a valuable role in the lives of many older people guidance available at Business Link (www.businesslink.gov.uk/ but like any workplace they carry certain health and safety risks. employingpeople) covers all aspects of employers’ obligations, and includes free access to interactive tools and documents that According to Eamon McGrath, the problem of assessing those are quick and easy to use. risks is now much easier, thanks to the Health and Safety Executive’s website and their online tool, five steps to risk This has helped save businesses an estimated annual assessment on www.hse.gov.uk/business/risk.htm £418 million in administrative burdens. BIS is now making this guidance available directly to businesses in the form of a simple HSE produces 34 example risk assessments for different desktop download that sets out clearly their obligations types of low-risk organisations which bring combined savings throughout the employment lifecycle - from recruitment, of £235 million per year. to retention and leaving. SECTION 2 | Chapter 1: Year 4: Progress so far 22
  • 23.
    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: Progressby 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 belowshows 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, thirdand 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, theEVP chose to In 2009, the Panel took a slightly Defra scrutinise the top simplification measures Government different approach to increase the breadth of their scrutiny of NetRegs Departments implemented the programme; by making sure NetRegs (www.netregs.gov.uk) is a web-based service offering between May 2005 and May that each Department involved clear, reliable guidance to UK businesses on how to comply with 2008, covering over 80% of the in the Administrative Burden environmental legislation and reduce their environmental reported gross annual savings. Reduction Programme had impacts. It provides free up-to-date guidance specifically tailored Departments were made been reviewed by the Panel, at to the needs of small and medium sized enterprises (SMEs). It responsible for the scrutiny least once. As a result, 77.5% also serves a wide range of business advisory bodies and trade of smaller measures. of the Programme’s total gross associations across the UK. The guidance covers 36 categories savings delivery to May 2009 Following the Panel’s review, of environmental topics and over 110 business sectors. was validated. gross savings of an estimated In a July 2009 user survey, 94% of businesses rated it as a ‘good’ £1.86 billion were validated, The External Validation Panel or ‘excellent’ business tool. covering 87% of reported delivery will meet again in Summer up to May 2008. 2010 to review and validate final The EVP validated £10 million of savings from the NetRegs delivery across the Programme, programme (which should rise to £12.5 million by 2010) and To complement this scrutiny, taking into account the savings held up NetRegs as a good example which was well-evidenced Departments and the BRE carried realised since May 2009. to demonstrate that it brings real savings and improvements out their own validation exercises to business. on smaller simplification measures (over £10 million) so that overall 92% of reported delivery to May 2008 had been verified. “The External Validation Panel provides a necessary credibility check to the administrative burden savings that Government Departments claim. The CBI is pleased to have played a part in scrutinising this year’s claims against the experiences of business.” Lucy Findlay, Confederation of British Industry SECTION 2 | Chapter 1: Year 4: Progress so far 27
  • 28.
    FIGURe 6: Overviewof 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 toelectronic 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 " Itcould 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 ThirdSector 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. charitycommission.gov.uk/Library/tcc/pdfs/ccdirect.pdf 5. Easier and more convenient way to update registration details online. 6. Some charities will benefit from a simplified process: • for spending small amounts of capital; • to facilitate mergers; and • to streamline trustee indemnity insurance and trustee payments for the provision of services. 7. Stronger influence through partnership work with small to medium charity umbrella bodies. This represents over £1.66 million of savings. SECTION 2 | Chapter 2: The Third Sector 32
  • 33.
    Wider Simplification BIS Reducing Funding & Monitoring Burdens Employment Law Organiser: Funding and monitoring is often highlighted as imposing the most Better access to advice guidance burden on the third sector. The Department for Business, Innovation and Skills (BIS) has In 2009 the Office of the Third Sector published ‘Principles of launched a free desktop tool. Proportionate Monitoring’5 and collaborated with the National Audit Office to publish ‘Intelligent Monitoring’6. These reports encourage Employment Law Organiser provides a summary of the key Government Departments to take account of the third sector in obligations that every employer in a small to medium sized creating less burdensome monitoring regimes. enterprise (SME) needs to meet – from small business managers to charity directors – and includes links through to the relevant A number of Departments including DCSF, DfT and MoJ have free guidance on the Business Link website. embedded the principles of these reports into grant-making practices. This will begin to benefit third sector organisations in 2009 to 10. As many third sector organisations don’t have a dedicated HR team to help out, the new tool will make it much simpler for bosses to comply with their obligations, saving them time and money. Sitting as an icon on a PC desktop, Employment Law Organiser can be opened quickly and used when needed. The Employment Law Organiser will be automatically updated as and when new legislation is introduced helping employers keep up to date with their obligations. Employment Law Organiser is in addition to the £418 million of savings delivered through the employment law guidance programme. www.businesslink.gov.uk/employmentlaworganiser 5. http://www.cabinetoffice.gov.uk/media/216752/principles.pdf 6. http://www.nao.org.uk/guidance_and_good_practice/toolkits/intelligent_monitoring.aspx?alreadysearchfor=yes SECTION 2 | Chapter 2: The Third Sector 33
  • 34.
    DCSF Proportionate Monitoring ofGrants "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 SmallBusinesses 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 hassimplified • 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. http://www.hse.gov.uk/risk/risk-assessment-and-policy-template.doc 8. www.businesslink.gov.uk/employmentlaworganiser SECTION 2 | Chapter 3: Helping Small Businesses 37
  • 38.
    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 MeasurementOffice Self-verification of equipment BIS "Like all responsible businesses we strive to Employment Law Tools reduce our carbon emissions and the changes have " It is important to be on top of how to manage enabled us to test, adjust and verify in one visit. your employment obligations if you want to be a This has allowed us to make better use of our successful and competitive business. As a small resources overall including a reduction in costs in business, you have to watch every penny and get excess of £200,000. Our customers also benefit as much support as possible. I subscribe to the from the single visit, through reduced charges, Business Link newsletter service and look at less disruption, and not having inaccurate the site. dispensers out of action." “The tools on the site are very useful and simple to use. Michael Hollier, MD, Retail & Forecourt Solutions Ltd When I need specific advice I will turn to the professionals but do a lot of the groundwork myself, and using the site isn’t time "This will benefit the nine and a half thousand consuming or complicated. fuel retail sites in the UK, at least seven and “We often employ part-time staff and being up to date with the a half [thousand] of these being small to latest in employment law and legislation helps us to be confident medium-sized enterprises." when it comes to recruitment decisions.” A spokesperson from the Petrol Retailers’ Association John charles, catering2order Manufacturers, installers and repairers of trade equipment John Charles established Catering2Order in 2007 and now are now able to self verify after they have adjusted equipment employs 15 staff. Since the early stages of setting up his to improve its accuracy. business, he has used many of the tools available on www.businesslink.gov.uk This change has mainly benefitted petrol and diesel retailers whose equipment is subject to quite frequent repair. It has saved Improvements to employment law guidance have saved the retail fuel industry approximately £615,000 a year. businesses £418 million a year. SECTION 2 | Chapter 3: Helping Small Businesses 39
  • 40.
    SECTION 3 Wider Simplifications (outsideof 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 PublicSector 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: Deliveryon 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: Reductionof 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 inBurden 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 onimproving 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 atthe 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 withthe 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 workcarried 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 TheUK 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 policyburdens 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: Processby 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 Someregulations, 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. http://www.berr.gov.uk/files/file53252.pdf SECTION 3 | Chapter 3: Reducing policy burdens and irritants 55
  • 56.
    Home Office Criminal RecordBureau – 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: AdminBurden 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 belowexplains 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 ValidationPanel 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: EVP08scrutiny 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: Resultof 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: Measuresfully 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: Measureswithdrawn 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: EVP2008 - 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 2009validation 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: EVP09Overview 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: Measuresfully 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: Measurespartially 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 MeasurementProcess: 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 Costsalso 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 Themeasurement 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 TheDepartments 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: 2009Departmental 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
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