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Transforming the regulatory landscape - launch of consultation on a bill for Better Regulation

The consultation stage of a bill for Better Regulation was launched today by John Hutton, Chancellor of the Duchy of Lancaster.

The bill will speed up the Government's Better Regulation agenda by enabling the government to implement measures to remove unnecessary burdens on business more quickly and efficiently.

The legislation will create a new radical risk-based approach to inspection that shifts resources away from routine inspection for businesses in safer areas with a proven track record, towards businesses in higher risk areas and rogue traders. And it will enable the merging of inspectorates to take place, cutting down on repeat requests for information from inspectors who could be pooling their resources.

John Hutton, who is responsible for leading the Better Regulation agenda across government, said:

'Today I am setting out proposals for new legislation that will enable government to deliver regulatory reform measures more quickly and efficiently.

'Businesses have welcomed our radical plans to first measure the administrative burden of regulation, then set clear targets to reduce it; this proposed bill for Better Regulation will give us the tools to fully deliver the government's programme.

'The potential economic gains from stripping away unnecessary regulation are enormous. The Better Regulation Task Force (BRTF) has estimated that changing our approach could boost British national income in the long term by 1% of GDP - a huge gain of around £10bn for the UK economy.

'I am confident the private sector and business will contribute in a practical way to the consultation, feeding in practical ideas and telling us how we can lighten their load whilst protecting standards.'

As set out in the Better Regulation Action Plan the government is committed to:

• regulating only where necessary and in a light touch way that is proportionate to risk
• Setting exacting targets for reducing the cost of administering regulations; and
• Rationalising the inspection and enforcement arrangements for both business and the public sector.

The proposals aim to ensure that British businesses can remain competitive in the ever-changing global economy, and continue to remove all bureaucratic impediments to the efficient working of public services.

Taking action to reduce the costs and burdens on business and the public sector posed by regulation is vital. The recent reports by Philip Hampton and the BRTF mapped out a radical agenda for better regulation; the Government has accepted their recommendations in full.

The Government's formal response to the Better Regulation Task Force report 'Less is More' has also been published today. The Bill consultation will run until 12 October 2005.

Commenting on today's announcement Sir David Arculus, chairman of the Better Regulation Task Force, said

'I welcome the fact that the Government has responded to the recommendation in our report 'Less is More', carried out a review of the Regulatory Reform Act and has now come forward with proposals to widen the use of Regulatory Reform Orders. We want to see these powers fully utilised and for departments to come forward with rolling programmes of simplification to reduce regulatory burdens wherever possible'

Welcoming today's announcement Stephen Alambritis of the Federation of Small Business said,

'The consultation on the Better Regulation Bill must be a key vehicle in the journey to erasing unnecessary regulation. The recommendations from Hampton and the BRTF have the support of the SME community and deserve early and faithful adoption.'

Notes to editors

1. The consultation document on a bill for Better Regulation is available at http://www.cabinetoffice.gov.uk/regulation/bill_for_better_regulation/



2. At Budget 2005, two independent reports were published, the Better Regulation Task Force report 'Less is More' and Philip Hampton's report 'Reducing Administrative Burdens'. The Government accepted all the recommendations in both reports.



3. 'Less is More' recommended establishing a rolling programme of simplification of existing regulation by government departments and targets to reduce administrative burdens for business. It recommended that mechanisms for delivering these simplifications might include powers under an extended Regulatory Reform Act. It is available at www.brtf.gov.uk/reports/lessismoreentry.asp



4. The Hampton report recommended a set of principles for regulatory inspection and enforcement, based around risk and proportionality, as well as a major streamlining of regulatory structures.



5. The government response to the Better Regulation Task Force 'Less is More' is available at www.brtf.gov.uk/responses/



6. The consultation document on a bill for Better Regulation also includes the findings of a review of the Regulatory Reform Act 2001.



7. The Better Regulation Action Plan is available at
   www.hm-treasury.gov.uk/newsroom_and_speeches/press/2005/press_50_05.cfm

http://www.cabinetoffice.gov.uk