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Last updated: 24 June 2009
15 September 2005
CAB 043/05
John Hutton, the Minister for the Cabinet Office, today launched a ground breaking project to measure then reduce the amount of paperwork and administration costs that government regulations impose on British businesses and charities.
John Hutton said that the cross–government drive, which has been recommended by business–led independent watchdog the Better Regulation Task Force, will allow government to set cast-iron targets to reduce regulation.
He said: ‘Many governments have said they are concerned about the burden of form–filling and inspection on business – but we are the first in the UK to face up to the challenge by pledging to properly measure the scale of the problem and then set meaningful targets to reduce it.
‘If we are serious about delivering better regulation by tackling the cost of admin burdens on business, we first need to be able to measure exactly what that cost is. This approach has been recommended to us by business leaders and I am delighted to get it underway. It will be an important way for businesses to hold the government to account on our success in delivering better regulation that lightens the load on business while protecting standards for consumers and working people.’
The government's commitment to measure the admin burden in the economy is based on a radical approach adopted by the Dutch government.
The project will involve interviewing businesses, charities and independent organisations to gauge how much it costs them to comply with government regulations.
The Better Regulation Executive aims to complete the measurement exercise early in the New Year. Ministers will then set clear targets to reduce the admin burden facing firms and charities, so businesses and the public can assess the progress the government is making on removing needless burdens.
John Hutton also today launched a new way for businesses to challenge government to simplify or scrap particular regulations they think are too burdensome.
Government will have a maximum of 90 working days to respond to proposals submitted through a new one–stop online portal – www.betterregulation.gov.uk [External website].
John Hutton said: ‘We need businesses to keep sending in their priorities for simplifying regulations they have to comply with. This new portal will make it simpler for people to get their views across – and we are committing to respond to every suggestion within 90 working days, saying whether we intend to take the proposal forward or explaining why we believe the regulation is necessary to uphold standards.’
Business and voluntary sector leaders also welcomed this announcement:
Stephen Alambritis of the Federation of Small Businesses said :
‘We welcome this imaginative approach to reducing unnecessary burdens on businesses. The close involvement of individual SMEs shows an appreciation that these are the very businesses best placed to identify the burden and suggest how it can be lifted.’
Miles Templeman, Director General, Institute of Directors said: ‘This is a welcome step towards making Government more responsive to the problems that businesses face in dealing with excessive regulation. Setting up the process is a vital first step, but the follow–up action is what really matters. ‘The Better Regulation Agenda is of crucial importance to business, and we are looking for Ministers to deliver.’
Sir David Arculus, Chairman, Better Regulation Task Force said:
‘We welcome the launch of the “Betterregulation” website. This is a direct response to the recommendation in our report Regulation – Less is More [External website], which called for the government to develop a robust mechanism for the submission of proposals for simplification by organisations and individuals. Business and other stakeholders have a critical role to play in working with government to identify proposals for simplification. This new initiative will enable stakeholders to bring examples of poor, redundant and over-burdensome regulation to the attention of the Government, and receive a prompt response to their submission.’
Stephen Bubb, Chief Executive, acevo said:
’Third sector chief executives will welcome the simplification process as a powerful new means of combating inefficient or unnecessary regulation. For too long, onerous reporting requirements have diverted charitable resources into bureaucracy and away from delivery. This initiative gives us an important new opportunity to improve the system.’
Businesses, charities or voluntary organisations wanting to contribute to the Admin Burdens Reductions Project Measurement Exercise can find a fact sheet online at www.cabinetoffice.gov.uk/regulation or email abmeasures@cabinet-office.x.gsi.gov.uk
In October 2004 the Prime Minister asked the Better Regulation Task Force to look at the Dutch Standard Cost Model. The Task Force reported their findings in their report ‘Regulation: Less is More’ in March 2005. They recommended that, to strengthen the structure for managing the total regulatory burden, the government should:
The Government accepted the recommendation as part of this year's Budget response. The adoption of the Dutch Standard Cost Model is being co–ordinated by the Admin Burdens Reductions Project within the Cabinet Office, and by Her Majesty's Revenue and Customs (HMRC) who are conducting a parallel exercise to focus on the tax system.
The measurement exercise outcome will be a baseline cost of the administrative burden that is placed on UK businesses, charities and voluntary organisations by regulation. The exercise will involve detailed measurement of the administrative burden of regulation through extensive interviews with individual businesses, charities and voluntary organisations between November and December this year. The data will be compiled to deliver a baseline that can be used as the basis to set reductions targets.
The Task Force recommended that the Government appoint consultants to conduct the exercise, as well as identifying resources within government to deliver the change. PricewaterhouseCoopers (PwC) has been awarded the contract to conduct the measurement exercise across government. A parallel exercise is being conducted by HMRC who announced today that they have appointed KPMG to focus on the tax and duty system.
The maximum cost of PwC's contract across government will be 11.4million. The contract will run from September 2005 to March 2006 and was competitively tendered through the Office of Government Commerce S–CAT register. The invitation to tender was issued on 6 July 2005 and the closing date for bids was 1 August 2005.
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