Latest trends in Enforcement and Inspection Reforms: Prosperity and Protection

• Age of austerity - implications for regulation

• Can regulation support growth?

• UK Government approach

• Towards a model for Inspection Reform

UK GDP Growth 2005 - 2014

UK austerity measures 2010 - 2018

From peak to trough the UK economy shrank by 7.2%

Impact of Austerity

Influence and feedback

Influence and feedback

Regulation and advice

Regulation and advice

DemandDemand

Regulated InformationRegulated Information

Polic

ies an

d prio

rity s

etting

Polic

ies an

d prio

rity s

etting

Educ

ation

Educ

ation

Can regulation support growth?

Regulation and GrowthImpact Benefits for business 1. Reduce costs

1.1 Minimises transactional costs

1.2 Mitigates regulatory risks

1.3 Minimises reputational costs

2. Improve confidence and control

2.1 Provides day to day management control

2.2 Ensures recognition for investment in compliance

2.3 Enables confident future planning and investment

3. Realise wider economic benefits

3.1 Ensures a level playing field

3.2 Provides local community benefits to businesses and citizens

3.3 Contributes to shared outcomes at a national level

Regulatory Reform in the UK

Rule making

• Reduction of unnecessary burdens on business

• Change in policy making culture - regulation only when necessary

– One in one out

– Red Tape Challenge

– Alternatives to regulation

– Regulatory impact assessment

Regulatory Delivery

• Reduction of unnecessary burdens on business

• Risk based, targeted, proportionate

• Change in culture– Better inspections– Consistent enforcement– Alternatives to

enforcement– Measuring impact on

compliance

Results• Through one-in, One-out and One-in, Two-out, the

Government has delivered combined net annual savings to business of 1.19 billion.

• There has been a continuing fall in the number of businesses that see regulation as an obstacle to business success – from 62% in 2009 to 51% in 2014

• The Red Tape Challenge has identified over 3,000 regulations to scrap or improve. Once implemented, this will deliver annual savings of over £850 million to business.

The Regulatory Policy Cycle: respective roles of

BRE, BRDO and RPC

1. Regulatory Policy

6. Evaluation

2. Problem Identification

3. Developing Options

4. Recommendation

s to Ministers

Making

Whitehall

machine

work Owning the IA

process

Providing a forum for business

engagement

Encouraging dept

ownershipPolicy

advice on delivery

considerations

Assessment of IAs,

policy options

Engagement with

regulators & business

Simplifying regulatory delivery &

PA

Feedback from

business & regulators

Landscape review approach

PIRs

EU and Ministeri

al engagement

2. Problem Identification

Providing a forum for business

engagement

5. Delivery

Sustainable improvement in delivering regulation

Rules

Frameworks Performance Management

Accountability to business

Cultu

re/C

ompe

tenc

y

Lead

ersh

ip

Values

PrimaryAuthority

Sustainable improvement in delivering regulation

Rules

Frameworks Performance Management

Accountability to business

Cultu

re/C

ompe

tenc

y

Lead

ersh

ip

Values

Regulators’ Code

Service standards

Fees & charges

LeadershipskillsCompetency

framework

Professional development

Core skills

Business planning

Strategic risk

Performance Monitoring

Business Reference

Panel

Better Business for

All

Priority Regulatory OutcomesImpacts & Outcomes

Focus on Enforcement

Data Sharing

Risk Frameworks

Growth Duty