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Economics and Evidence

Recent Study

In April 2007 the department commissioned an exercise to try and capture the requirements for users and contributors to the UK Point of Single Contact (PSC). The aim was to establish a prioritised list of the essential and other desirable PSC features. Key findings suggest the portal should be proactive and helpful; content should focus on basic information on setting up a business; build on existing services (particularly Business Link) and ideally the website service should be supplemented by electronic and telephone support mechanisms. The report also considers other issues such as charging, outsourcing, language and how many PSCs there should be. Readers are invited to send comments on the report’s recommendations or the PSC generally by email to servicesconsultation@berr.gsi.gov.uk. For full details of the report see Related Documents on the right hand side of this page

Impact Assessment

The former DTI published a revised partial Regulatory Impact Assessment (RIA) of the Directive's impact (Commission's proposal of 4 April 2006) (see Related Documents), which used the work of several studies, notably, the: 2005 study by Copenhagen Economics for the European Commission and a 2004 study by the Netherlands Bureau for Economic Policy Analysis (see External Links on right of this page). We will be updating the Regulatory Impact Assessment (RIA) in preparation for the formal public consultation in autumn 2007

Previous Studies

A study by Deutsche Bank, published June 2006 - (see External Links) found that "more than one-third of value creation in the EU is likely to fall under the simplified rules of establishment and cross-border supply of services. As a result, completely new trade, investment, supply and demand patterns could emerge in a multitude of sectors…All things considered, productivity ought to rise in the EU - and probably employment, too".

In October 2005 DTI commissioned an economic study to estimate the administrative costs and benefits of Points of Single Contact and Mutual Assistance as provided for in the draft Services Directive.  The analysis was based on the requirements in the UK Presidency consolidated text of November 2005 and the report was published in April 2006 (see Related Documents).

A report commissioned by the former DTI on the "Impact of the proposed EU Directive on Services in the Internal market: case studies of UK businesses" was published on 20 September 2005.

A report commissioned by the former DTI on the "Economic Importance of the Country of Origin Principle in the Proposed Services Directive" was published on 12 October 2005 (see Related Documents). This study built on work carried out by Copenhagen Economics for the European Commission in 2004 (see External Links) and DTI are grateful to the Commission for permitting this use of their work.

A 2002 survey by the Commission, the "State of the Internal Market" (see Related Documents), identified some 91 barriers that service providers have faced in providing services across borders.  The report was produced following a consultation with services providers across the EU in 2001. The Commission concluded that many service sectors were hampered by problems such as burdensome authorisation procedures, excessive red tape and legal uncertainty.