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Red Tape Challenge

Agenda

• The UK’s Better Regulation Framework

One-In, Two-Out

Focus on Enforcement

• The Red Tape Challenge

Methodology

Successes

Lessons Learned

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UK’s better regulation programme

• Priorities: less regulation, better regulation, and regulation

as a last resort

“I want us to be the first

government in modern history

to leave office having reduced

the overall burden of regulation,

rather than increasing it.”

Prime Minister David Cameron’s letter to all Cabinet Ministers

6 April 2011

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Key Framework Components

Stock

(Existing Regulation)

Flow

(New Regulation)

Red Tape Challenge

Focus on

Enforcement

One-In, Two-Out

European

Regulation

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‘One-in, Two-out’ • Each Department (Ministry) must ensure that

the value of new INs is offset by OUTs of

double that amount

• All new regulation requires an Impact

Assessment quantified as Equivalent Annual

Net Cost to Business(EANCB)

• All IAs subject to independent verification by

Regulatory Policy Committee (RPC)

Total value of

‘INs’ £30M

Total value of

‘OUTs’ £60M

Ranking Department OITO position

(SNR5-7) (£m)

1 Department for Communities and

Local Government -£102.01

2 Department for Business, Innovation

& Skills -£68.12

4 Department for Transport -£46.77

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Department for Culture, Media &

Sport /

Government Equalities Office

-£40.78

6 Department for Environment, Food

& Rural Affairs -£27.88

7 Department for Work & Pensions /

Health and Safety Executive -£11.23

3 Department of Energy & Climate

Change -£3.67

8 Food Standards Agency -£0.67

9 Ministry of Justice £0.00

10 Cabinet Office £0.00

11 Department of Health £0.00

12 Department for Education £2.78

13 Home Office £10.69

14 HM Treasury £26.00

Focus on Enforcement • Sector reviews of business experience of enforcement of legislation

in an area. E.g. fire safety, small food manufacturing, chemicals

• Findings not recommendations. Departments/ regulators determine

actions in response

• New initiative announced in Dec 2013: “Business Focus on

Enforcement”. Business Groups invited to bid to run reviews of

regulatory enforcement

• BIS Ministers selected 3 ‘pathfinder’ reviews

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Red Tape Challenge

• A cross-Government programme to

tackle inherited stock of regulations

• A public website to let business and

taxpayers have their say about

burdensome regulations they face

• Intention is to root out unnecessary,

overcomplicated regulation that

strangles businesses and economic

growth

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Red Tape Challenge: Tackling stock

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The Prime Minister set a challenge in April 2011:

“We need to tackle regulation with vigour both to free businesses to

compete and create jobs, and give people greater freedom and

personal responsibility... Our starting point is that a regulation should

go or its aim achieved in a different, non-government way, unless

there is a clear and good justification for government being involved.

And even where there is a good case for this, we must sweep away

unnecessary bureaucracy and complexity, end gold-plating of EU

directives, and challenge overzealous administration and

enforcement” http://www.number10.gov.uk/news/letter-from-the-prime-minister-on-cutting-red-tape/

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments and concerns raised

2. Assign them to themes

3. Launch a theme and seek views

5. Internal/External Challenge 6. Star Chamber

8. Collective Agreement &

Reducing Regulation Committee

9. Second Implementation Star

Chamber

1. Identify regulations

RTC Methodology

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments and concerns raised

2. Assign them to themes

3. Launch a theme and seek views

5. Internal/External Challenge 6. Star Chamber

8. Collective Agreement &

Reducing Regulation Committee

9.Second Implementation Star

Chamber

1. Identify regulations

1. Identify regulation

• First time Government has attempted to identify all live

regulation which was affecting business

• Departments were tasked with identifying all regulation

owned by them, and its cost to business

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments and concerns raised

2. Assign them to themes

3. Launch a theme and seek views

5. Internal/External Challenge 6. Star Chamber

8. Collective Agreement &

Reducing Regulation Committee

9. Second Implementation Star

Chamber

1. Identify regulations

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Themes we have looked at…

• Retail

• Hospitality, Food and Drink

• Road Transportation

• Health and Safety

• Manufacturing

• Environment

• Equalities

• Children’s Services & Independent Schools

• Employment Related Law

• Rail

• Energy

• Housing & Construction

• Water

• Challenger Businesses

• Enforcement

• Medicines

• Maritime

• Aviation

• Company & Commercial Law

• Insolvency

• Pensions

• Civil Society

• Marine

• Sports & Recreation

• Business Services

• Healthy Living & Social Care

• Legal Services

• Planning Administration

• General Aviation

• Agriculture, Animal Health and Welfare,

Plant Health and Forestry

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments and concerns raised

2. Assign them to themes

3. Launch a theme and seek views

5. Internal/External Challenge 6. Star Chamber

8. Collective Agreement &

Reducing Regulation Committee

9. Second Implementation Star

Chamber

1. Identify regulations

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Launch on Web:

‘Spotlight’

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments and concerns raised

2. Assign them to themes

3. Launch a theme and seek views

5. Internal/External Challenge 6. Star Chamber

8. Collective Agreement &

Reducing Regulation Committee

9. Second Implementation Star

Chamber

1. Identify regulations

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(May 5):

“We cannot sell

Christmas crackers to

under-16s because they

fall within the scope of the

legislation. Such common

and low-risk goods, which

we do not believe were

the intended focus of the

legislation, should be

exempted.”

(May 26):

“We wish to allow guests to

pre-order champagne for

special occasions (to be

waiting for them in a B&B

room) or a bottle of wine to

go with their dinner in the

self-catering

accommodation – this is a

service (we are not next

door to pubs or shops) and

unlikely to create profit. For

this we would have to go

through the same licensing

procedure and costs as a

pub.”

(May 23): “This regulation

requires that no smoking

signs be placed at each

entrance to smoke-free

premises. The ban on

smoking in enclosed

public spaces has now

been in force for a

number of years we see

little need for businesses

to continually replace

signage [..] The signs are

also unsightly as well as

unneeded”

(Nov 14): “Extend the qualifying period to 2 years – compulsory mediation like

you are introducing in other areas such as divorce”.

4. Analyse comments and concerns

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments and concerns raised

2. Assign them to themes

3. Launch a theme and seek views

5. Internal/External Challenge 6. Star Chamber

8. Collective Agreement &

Reducing Regulation Committee

9. Second Implementation Star

Chamber

1. Identify regulations

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5. External input

woven in throughout

• Crowd-sourcing

• Sector champions

• Panels of ‘real’ businesses

• External ‘Challenge Panels’

• Twitter / social media

• LinkedIn group

• Alternatives to regulation

• Behaviour change

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments

and concerns raised

2. Assign them to

themes

3. Launch a theme

and seek views

5. Internal/External

Challenge 6. Star Chamber

8. Collective

Agreement &

Reducing Regulation

Committee

9. Second

Implementation Star

Chamber

1. Identify regulations

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• Star Chamber meetings felt different

• officials (not Ministers) in front of Oliver Letwin & Matt Hancock

• the policy lead did the speaking (however junior)

• business presence (often)

Oliver Letwin – Minister for

Government Policy

Matthew Hancock– Minister for

Business and Energy

6. Star Chamber

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments

and concerns raised

2. Assign them to

themes

3. Launch a theme

and seek views

5. Internal/External

Challenge 6. Star Chamber

8. Collective

Agreement &

Reducing Regulation

Committee

9. Second

Implementation Star

Chamber

1. Identify regulations

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments

and concerns raised

2. Assign them to

themes

3. Launch a theme

and seek v iews

5. Internal/External

Challenge 6. Star Chamber

8. Collectiv e

Agreement &

Reducing Regulation

Committee

9.Second

Implementation Star

Chamber

1. Identify regulations

8. Collective Agreement & Reducing Regulation

Committee

Cabinet Sub-Committees

• Economic Affairs (Reducing Regulation) sub-

Committee

• Home Affairs Committee

• European Affairs Committee

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Secretary of State for Business,

Innovation and Skills, Rt Hon Dr

Vince Cable MP

Deputy PM, Rt Hon Nick Clegg MP

Secretary of State for Foreign and

Commonwealth Affairs,

Rt Hon Philip Hammond MP

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UNCLASSIFIED

7. Post Star Chamber

4. Analyse comments

and concerns raised

2. Assign them to

themes

3. Launch a theme

and seek v iews

5. Internal/External

Challenge 6. Star Chamber

8. Collectiv e

Agreement &

Reducing Regulation

Committee

9.Second

Implementation Star

Chamber

1. Identify regulations

• Company Law: Gave more businesses flexibility on auditing accounts, saving businesses

£300m / yr

• Environment: Introduced clearer statutory guidance to reduce uncertainty about

contaminated land to avoid costly, unnecessary, remediation operations and save

businesses £132m / yr

• Health & Safety: Announced that 100,000s of low risk businesses such as shops, offices

etc. would be removed from proactive H&S inspections (except where there has been an

incident or poor track record)

• Employment Law: Introduced Early Conciliation to avoid the cost and stress of an

Employment Tribunal for all and save businesses £24m per year

• Health & Safety: Legislated so that businesses are no longer automatically liable for an

accident in the work place that isn’t their fault

• Equality Act: employers no longer liable for staff harassment by a 3rd party

Key Reforms Delivered to Date

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28 UNCLASSIFIED

Challenges & Lessons

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“Well, if it can be thought, it can be done, a problem can be overcome”

• Virtually the whole statute book was a lot! More targeted next time?

• It is not just about the regulations but also how they are enforced and the guidance and advice that accompanies them

• Departments’ ability to push it – resources; Ministers; political priorities

• Parliamentary process – sheer volume of reform

• Seeing things through to completion

• Communicating the success – businesses still see new regulation coming in

• Crowd-sourcing – needs a feedback loop. And didn’t replace need for formal consultation on substantial changes

• Data protection

UNCLASSIFIED

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External input helped drive the change

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• Counter-cultural to many – surely key role of Whitehall to regulate?

• Lots of external input provided new ideas; new evidence; reality checks...

...and gave Ministers substance to challenge Depts’ defence of regulation.

• But combined with:

• Alignment with other incentives – the need to find ‘OUTs’ ; growth;

efficiency; Civil Service Reform, digital by default...

• Strong (and sustained) central and political momentum

• Pace - ambitious targets in tight timescales

• Supported by lean joint Cabinet Office/BIS team, partnering with Depts

UNCLASSIFIED

UNCLASSIFIED

Any Questions

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Useful links

Better Regulation Executive website:

• https://www.gov.uk/government/policies/reducing-the-impact-of-regulation-on-business

Red Tape Challenge website:

• www.redtapechallenge.cabinetoffice.gov.uk/

Focus on Enforcement website:

• http://discuss.bis.gov.uk/focusonenforcement/

Statement of New Regulation

• https://www.gov.uk/government/organisations/department-for-business-innovation-skills/series/bis-statement-of-new-regulation


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