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Summary of

Simplification
Plans 2009
Contents (page 1 of 2)

Foreword by the Prime Minister.................................................................... 4 Chapter 2................................................................................................................. 31


Introduction by the Secretary of State. ....................................................... 5 The Third Sector............................................................................................... 31
2009 achievements....................................................................................... 31
Section 1 Summary..................................................................................... 6
Streamlined business practices. ............................................................ 31
Chapter 1................................................................................................................... 7
Making life simpler for small charities . .............................................. 31
Executive Summary. ......................................................................................... 7
Making employment law easier. ............................................................. 32
What do businesses need to know?......................................................... 8
Wider Simplification........................................................................................ 33
What is this report about?........................................................................... 9
Reducing funding & monitoring burdens. ........................................... 33
Chapter 2................................................................................................................. 10
Better Regulation – what next?................................................................... 10 Chapter 3................................................................................................................. 35
Helping Small Businesses............................................................................ 35
Section 2 Administrative Burden Reduction Programme.............13  Examples of Departmental think small first approaches............. 35
Chapter 1................................................................................................................. 14
Year 4: Progress so far. ................................................................................. 14
Delivery overview.......................................................................................... 14
Administrative burden reductions:
Progress by individual departments and agencies.......................... 23

Contents 2
Contents (page 2 of 2)

Section 3 Wider Simplifications (outside of ABRP). ....................... 40 Section 4 Annexes.................................................................................... 57


Chapter 1................................................................................................................. 41 Annex A.................................................................................................................... 58
The public sector.............................................................................................. 41 Cautious Predictions – risks to delivery by May 2010. ....................... 58
Reducing bureaucracy in the public sector........................................ 41 Annex B.................................................................................................................... 63
2009 achievements in reducing bureaucracy External Validation Panel May 2005 – May 2009.................................. 63
in the public sector....................................................................................... 41 Annex C.................................................................................................................... 76
Engaging with the front line and reducing The Measurement Process: The International Standard Cost
the stock of unnecessary bureaucracy................................................ 45 Model Methodology. ........................................................................................ 76

Wider work on improving public sector efficiency........................... 46 Stage 1 Measurement................................................................................. 76

Chapter 2................................................................................................................. 47 Stage 2 Adjusting for business as usual.............................................. 78


Simplifications at the European level....................................................... 47 Annex D.................................................................................................................... 79
UK engagement with the EU. ................................................................... 48 Baseline Adjustments. ................................................................................... 79

Improvements to incoming European legislation............................. 51 2009 Baseline adjustments....................................................................... 80

Chapter 3................................................................................................................. 52
Reducing policy burdens and irritants..................................................... 52
Policy burdens: Process by
individual Department and Agency........................................................ 53
Reducing Non-Monetary Irritants.......................................................... 55

Contents 3
Foreword by the Prime Minister

Creating and maintaining We are on track to meet our


a world-class business promise of a net 25% decrease
environment is essential to in the administrative burdens
economic growth. Building on business with plans in place
a robust and flexible to deliver £3.3 billion in annual
regulatory framework is savings to businesses by May
central to this because it 2010, and I am pleased that the
encourages investment Government was able to make a
and removes barriers. further commitment this year to
cut the annual costs of existing
The UK already has the best
regulation by a further £6.5 billion
business environment in Europe,
over the next five years.
and ranks fifth in the world, Gordon Brown
according to the World Bank. The UK leads the way on Prime Minister
We have made significant regulatory reform, and I am
progress this year pushing determined that we will continue
forward our ambitious to deliver our ambitious Better
regulatory reform agenda and Regulation Agenda, to make
increasing the transparency sure that regulation works
and accountability in the way better for everyone.
the Government operates.

Foreword by the Prime Minister 4


Introduction by the Secretary of State

Following the recent global year - saving them time, money The publication of our first
financial crisis and as global and resources to direct towards Forward Regulatory Programme
competition increases, it is achieving their ambitions for and creation of a new body, the
more important than ever that the future. Regulatory Policy Committee
the Government continues to shows our commitment to
We are on target to cut the
ensure a regulatory framework improve transparency,
administrative burden of existing
that is fair, appropriate and accountability and external
regulation by 25% by May 2010.
reflects the demands of a 21st scrutiny.
But we want to go further and our
century economy.
new target of £6.5 billion will This report sets out what the
The Government is focused on address both the administrative Government has achieved so
striking the right balance and wider costs of regulation. far this year and since 2005,
between guaranteeing essential and we will continue to do
We are working hard across
protections and rights are upheld everything we can to foster Peter Mandelson
Government to establish
and recognising the impact of growth, innovation and fairness Secretary of State for Business,
regulation that is targeted and
excessive regulations on through better regulation. Innovation and Skills
proportionate and to help
businesses and our third sector.
organisations get the simple,
Our ambitious Better Regulation clear advice and support they
Agenda is already delivering real need to implement measures
benefits. The programme to effectively.
reduce administrative burdens is
achieving billions of net savings
to individual organisations every

Introduction by the Secretary of State 5


Section 1

Summary

Chapter 1 E
 xecutive Summary
Chapter 2 Better Regulation – what next?

6
Chapter 1

Executive Summary

The Administrative Burden environment, which is fair and Since the beginning of the Public sector organisations
Reduction Programme – proportionate and responds to a Administrative Burden Reduction also face administrative
saving businesses time and rapidly changing global economy. Programme in 2005, the burdens. In 2009 there has
money by reducing red tape. Government has implemented been real progress on reducing
The Administrative Burden
280 separate simplification the number of information
Effective and evidence-based Reduction Programme, part
measures to reduce the time requests and on reducing the
regulations can play a critical role of the UK’s Regulatory Reform
and money businesses, charities burden of information requests
in correcting market failures, and Agenda, identifies, simplifies
and the public sector spend on from central Government to
provide essential protections for and sometimes removes the
administration. public sector organisations.
the general public. administrative burden placed
These reductions are a positive
on organisations to demonstrate Her Majesty’s Revenue and
The Better Regulation Agenda and tangible step in reducing
they are complying with Customs (HMRC) is also
encourages Government to cut bureaucracy for the public
regulations. committed to reducing the
unnecessary bureaucracy and sector front line.
administrative burden of tax
out of date regulations – making The Government is committed
regulation and has been set
life simpler for businesses, third to reducing the administrative
separate reduction targets by
sector organisations and the burden faced by business and
the Chancellor. Details of this
public sector front line. the third sector by 25% by May
programme can be found on
2010, and expects to deliver
In the current economic climate it the HMRC website1.
approximately £3.3 billion net
is particularly important to make
annual savings. By December
sure that Government creates a
2009 Government has delivered
world-leading regulatory
£2.9 billion net annual savings
towards this target.

1. http://www.hmrc.gov.uk/budget2009/new-relationship-605.pdf Section 1  |  Chapter 1: Executive Summary 7


What do businesses The External Validation
Defra Panel was set up to test that
need to know?
Environmental Permitting Programme simplification measures in the
Government has now made 280 Administrative Burden Reduction
" When you run your own business and you're simplification measures with Programme were effectively
hands-on all the time, sometimes you look 40 additional measures which communicated to businesses and
have started to deliver savings
at the volume of paperwork needed and it's in the last 12 months. Together
were felt on the ground. This year
a headache. the External Validation Panel has
these measures are delivering to again scrutinised the
business the potential to realise
"Before the new system, our licence application an estimated £2.9 billion net
Government’s delivery.
fee would have been around £10,000. But the annual savings. In Summer 2009 the External
new permit costs us much less, around £1,300." Validation Panel met again to look
In 2008 the Government at the delivery of new measures.
Carl Brittain, owner of Mr Rubble Skip Hire established the External By May 2009, 77.5% of the
Validation Panel. This is an Programme’s total gross savings
Waste Management Licensing and Pollution Prevention
independent panel including delivery was validated.
and Control systems have been consolidated from 41 sets
representatives from the
of regulations into just one, a third of the length of the The External Validation Panel will
Confederation of British Industry,
original legislation. meet again in 2010 to review and
the Institute of Directors, the
One permit has replaced several types of permit under the British Chambers of Commerce, validate final delivery across the
old system, meaning that it’s easier for businesses to obtain the Federation of Small Programme.
the right one. Businesses and the Trades
Union Congress.
This means that getting an environmental waste management
licence is now a very easy process and will save business up to
£8.9 million by December 09.

Section 1  |  Chapter 1: Executive Summary 8


What is this report • influencing Europe and other
international organisations
about?
to promote a culture of better
This document provides a regulation, ensuring that the
summary of the Government’s UK economy will benefit; and
progress towards delivering 25%
net reduction in administrative • minimising the policy burdens
burdens since the beginning of and key irritants faced by
the Programme in May 2005, businesses. To date,
with a particular focus on £1.19 billion gross annual
progress over the past year. policy savings have been made.

This summary also reports on You can find more information


the Government’s progress in on individual Departments’
delivering wider simplifications. achievements in their
It describes the Government’s Simplification Plans, which are
achievements in: published on the BIS website2.

• reducing the number of


information requests from
central Government to public
sector frontline workers by
30%. By December 2009 a
30.8% reduction of information
requests has been delivered,
with further delivery expected
by May 2010;

2. http://www.berr.gov.uk/whatwedo/bre/policy/simplifying-existing-regulation/simplification-plans/page44063.html Section 1  |  Chapter 1: Executive Summary 9


Chapter 2

Better Regulation – what next?

The Government has a has reviewed the regulations comprehensive forward The Government has also set up
wide-ranging regulatory it is introducing which would indication of existing and possible a new independent Regulatory
reform programme. The increase burdens on business future regulatory proposals to Policy Committee whose role is
current programme began during the recession and allow for improved medium-term to advise the Government on
in 2005. In April 2009 the recovery. Twenty six planned business planning. whether it is doing all it can to
Government set out the next regulations will now not be accurately assess the costs and
The Government is also working
steps to drive forward the introduced before April 2011, benefits of regulation. Building
closely with European Union
Better Regulation Agenda. deferring costs to businesses of on the work of Philip Hampton,
partners to further embed the EU
£3.5 billion, nearly one third of the this body will also advise the
The recent economic climate has Better Regulation Agenda and to
new regulation that was planned Government on whether
underpinned the importance of ensure the current pressures on
for introduction over the next 18 regulators are appropriately
the Government’s focus on business are taken into account
months. This includes delaying risk-based in their work.
delivering real help for business. when new European regulation is
giving employees of small and
In April this year the Government being considered.
medium sized enterprises (SMEs)
therefore committed to a further
the right to request paid time to Looking forward, the Government
programme of better regulation
train until 2011, to help small will adopt new simplification
measures tailored to the
business through the recovery, targets for 2010 to 2015 which will
exceptional economic
and delaying new building address all regulatory costs on
circumstances.
regulations until 2013. business including a further
Despite the need for new £1.5 billion net annual savings
In October 2009, the Government
regulation in some areas (such target for administrative costs
published, for the first time, a
as climate change, and financial and a £5 billion policy cost
Forward Regulatory Programme.
services in response to the reduction target.
This provides business with a
banking crisis), the Government

Section 1  |  Chapter 2: Better Regulation – what next? 10


CLG HSE
Electronic Communication
of Building Control Documents Removal of outdated requirements
HSE has removed eight forms which businesses previously had
"The ability to send and receive key building to fill out to notify the Government before employing staff in their
control documents by electronic means is premises. These requirements had little current relevance as
greatly welcomed. there are other means of obtaining this information.

“It saves time and effort, not just in terms of printing and HSE’s public consultation in Autumn 2008 showed strong support
postage but also because the statutory time limit starts virtually for removing the requirements. This included support from local
instantaneously, whereas for posting you need to allow two days. authorities. The amending legislation came into effect in April
It therefore means that our business can run more efficiently and 2009, reducing the administrative burden on businesses by
cost-effectively and this benefits our customers too.” £21 million annually.

David McCullogh, TPS

Most building control documents and information transfers can


now take place electronically. This substantially reduces the
amount of time and cost of acquiring, completing, submitting and
processing hard-copy documents. This will deliver an anticipated
annual saving of £38 million by May 2010.

Section 1  |  Chapter 2: Better Regulation – what next? 11


DfT
Dangerous Goods – Instructions in Writing
" If the information is there, in the driver's
possession, and it is legible, that is fine. This is
an example of the broader attitude that industry
welcomes, whereby the mildly creative approach
is accepted, in the UK at least."
Dr Andy Holton, Product Stewardship Manager,
ExxonMobil Chemical Ltd

DfT removed the requirement for companies involved in the


transport of dangerous goods to produce instructions on safe
handling of products in the languages of all the countries through
which the shipment travels. This saves businesses an estimated
£200,000 each year.
Dr Andy Holton praised the effective cooperation with the police
and the pragmatic approach to the format of instructions in writing.

Section 1  |  Chapter 2: Better Regulation – what next? 12


Section 2

Administrative Burden
Reduction Programme

Chapter 1 Y ear 4: Progress so far


Chapter 2 T
 he Third Sector
Chapter 3 H
 elping Small Businesses

13
Chapter 1

Year 4: Progress so far

Delivery in 2009 against the Delivery overview


net 25% administrative burden
reduction for the private and The following table shows the total administrative burden reduction delivery
third sectors. to date across Government and the planned delivery predicted by May 2010.

The Programme continues to FIGURE 1: Progress in Reducing Administrative Burdens


make real world improvements.
By December 2009 the £m annual admin Delivery Planned
burden savings to date (£m) delivery
Government has put in place
280 simplification measures, Baseline as at May 2006 May 2007 May 2008 Dec 2008 May 2009 Dec 2009 May 2010
delivering an estimated Dec 2009

£2.9 billion in net annual savings. £13,141.0


Net Reductions3 £348 £674 £1,665 £1,950 £2,378 £2,927 £3,290
The Government is planning to
deliver total net annual savings % Reduction 2.65% 5.13% 12.67% 14.84% 18.09% 22.27% 25.04%
of around £3.3 billion by May
2010 and is therefore on track to
deliver its 2005 commitment to
reduce the administrative burden
faced by business by 25%.

3. The figures from May 2006 to December 2008 have been revised to reflect 2009 baseline adjustments. Section 2  |  Chapter 1: Year 4: Progress so far 14
In December 2009, the With this in mind, this year we
Programme is on track, and is have derived a risk-based Forestry Commission
now delivering £2.9 billion in net analysis of the programme, which e-Business for Forestry
annual savings, meeting the sets out a cautious estimate of
predicted December 2008 final delivery. We currently " It's virtually a revolutionary change in the way
delivery forecast. This shows expect, on the cautious case, we handle all the adminstration of our buying.
good recent progress following that the programme would
some under-delivery in May 2009 deliver around £3.2 billion in Electronic trading has saved us a full-time post;
against Departments’ December annual savings by May 2010. it is faster, more efficient, and makes better
2008 forecasts. This cautious estimate takes into data available, with no need for checking."
account potential delays in the
The cross-programme forward Neil Cowan, Howie Forest Products
take-up of some measures.
forecast for delivery to May 2010
As a result of recent economic E-Business for Forestry has moved paperwork required by
shows that the Programme will
conditions, business has the Forestry Commission online. This has brought savings
deliver £3.3 billion net annual
understandably been slower than of over £1.4 million to its customers.
savings. However, there is very
anticipated in taking up some of
little contingency across the
the available opportunities to
Programme. It is important that
reduce administrative costs. In
all Departments manage their
this cautious-case analysis we
individual delivery programmes
anticipate that the programme
very carefully over the next five
would deliver £3.2 billion by May
months to ensure delivery of the
2010 and the full £3.3 billion in net
final target in May 2010.
annual savings by October 2010.

Section 2  |  Chapter 1: Year 4: Progress so far 15


• By May 2009 Departments
CLG had delivered an estimated
£2.38 billion net annual savings
Greater Flexibility for through the Administrative
Planning Permissions Burden Reduction Programme.

Two new measures will provide a greater degree of flexibility • The External Validation
and reduce the need for completely new applications for Panel has validated 77.5%
planning permission. of gross savings reported by
Departments to May 2009.
A simplified planning application procedure at a reduced fee will
allow property developers to seek an extension to the time limits • Between May and December
for implementing an existing planning permission. Businesses 2009, Departments have made
will also be able to apply to make non-material changes to an further progress. They have
existing permission through a simple application procedure with delivered a further £549
a quick turnaround time. million net annual savings
to business.
In addition to the £18.6 million savings for businesses, there will
be a reduction in workload for Local Planning Authorities, as these • Savings delivered between
measures will reduce the numbers of completely new applications May and December 2009 will
for planning permission. be validated by the External
Validation Panel in 2010.

Section 2  |  Chapter 1: Year 4: Progress so far 16


The tables below illustrate the top simplification measures delivered (by £million value). The first details the new
measures implemented in 2009, the second covers the top measures since the beginning of the programme.

FIGURE 2: Top New Simplification Measures delivering savings in 2009 (figure continues on the next page)

Measure Practical changes to businesses Total annual gross


administrative savings
as at December 2009

BIS Introduction of a general duty not to mislead consumers. £309m


Business to consumer Establishment of a single set of rules against unfair sales
advertising and and marketing practices directed at consumers.
marketing rules:
Transposition of the “This has been a very positive experience for us – the new
Unfair Commercial regulations freed us up and gave us a genuine opportunity
Practices Directive to explore new approaches.” Home Retail Group
(Competition Policy
(Not yet validated by External Validation Panel)
and Consumer Law)
BIS A key irritant for businesses. Employees and employers have now £115m
Dispute Resolution greater flexibility to undertake early resolution by dealing with
(Employment Law) workplace discipline and grievance issues in a way which suits
them best. They can now follow the Acas Code of Practice, which
sets out the principles that should be followed to address disputes.
(Validated by External Validation Panel)
HMT Lifts the previous requirement for paper settlement and transfer of £77m
Better regulation title for fund managers, stockbrokers, financial advisers and other
measures for the asset intermediaries by allowing electronic settlement.
management sector
(Not yet validated by External Validation Panel)
(Paperless Settlement)
DH Reduced transportation of paper prescriptions from prescriber £37.9m
Electronic prescription to dispenser as well as to agent for reimbursement.
service
Reduced information having to be rekeyed by the dispenser
and reimbursement agent.
(Not yet validated by External Validation Panel)
HSE Guidance available to businesses to decide when to label loads £32.5m
Manual handling to avoid manual handling injuries to workers.
operations regulations
(Validated by External Validation Panel)

Section 2  |  Chapter 1: Year 4: Progress so far 17


Measure Practical changes to businesses Total annual gross
administrative savings
as at December 2009
BIS Allows companies greater flexibility in keeping a register £30.5m
Other Companies Act of directors and members.
Measures (Company
(Not yet validated by External Validation Panel)
Law and Accounting)
HSE The electronic template for recording risk assessments saves £27m
Electronic Risk business time and encourages compliance with the requirement.
Assessment Template
(Not yet validated by External Validation Panel)
HSE By combining the need for a written policy statement and to record £26.5m
The Written Health and a risk assessment the measurement has reduced duplicated
Safety Policy Statement paperwork for businesses.
(Not yet validated by External Validation Panel)
MoJ These measures have been delivered following the introduction £26.1m
Legal Aid- Various of the Civil Unified Contract 2007 and the Unified Contract
Provisions under (Crime) 2008. Reduced burdens include improving systems such
the Civil and as replacing paper based systems with on-line systems and
Crimes Contract improving guidance.
(Not yet validated by External Validation Panel)
HSE Removal of requirements on businesses to fill out a form to notify £21m
Forms project HSE or their local authority before employing staff in their premises
and keeping registers.
(Validated by External Validation Panel)

Section 2  |  Chapter 1: Year 4: Progress so far 18


BIS – Dispute Resolution
Changes recommended by The Dispute Resolution Review were implemented via the
Employment Act 2008 and the new procedures came into force in April 2009. The new framework for
resolving employment disputes in Great Britain emphasises the importance of the early resolution of
workplace matters in the workplace. This was a key irritant for businesses and as a result of these
changes, employees and employers have greater flexibility to deal with workplace discipline and
grievance issues in a way which suits them best and which saves them £115 million annually.
The new Acas helpline and pre-claim conciliation services were also launched in April 2009 and are
projected to deliver a total of £14 million savings, £6 million of which has been delivered to date.

HSE
Manual Handling Operations
"Additional clarity of best practice and regulation that is readily and
easily accessible through electronic/internet access can only be a good
thing and therefore a supportive tool to supply chain handlers promoting
best practice with suppliers/manufacturers/ importers of goods."
Stuart Rainbow, Chairman, Parcel Carriers Safety Association

Lack of clarity surrounding when it was necessary to give workers guidance on the weight of every
load they had to carry was causing an estimated £150 million cost to business. To help businesses
reduce unnecessary costs whilst continuing to protect their workers, HSE produced additional
guidance on labelling loads in May 2008.
Ninety-one percent of respondents who had read the guidance stated in an online questionnaire
that the guidance helped them understand when a load needed labelling. Respondents expected
to save between £262 and £1,314 annually from reduced labelling, which translates to £32.5 million
savings across the board.

Section 2  |  Chapter 1: Year 4: Progress so far 19


FIGURE 3: Top Simplification Measures (by £ million value) since beginning of Programme (figure continues on the next page)

SIMPLIFICATION Description of savings Annual gross savings


MEASURES at December 2009

BIS The Employment Law Guidance Programme reduces the £418m


Employment Guidance administrative burdens imposed by employment law. The Guidance
Programme has produced free-to-use and legally-compliant online
tools, pro-forma letters and agreement forms, accessible through
www.businesslink.gov.uk
(£418m validated by the External Validation Panel as at May 2008)
BIS Provides a simpler legal framework, to protect consumers from £309m
Business to consumer unfair practices, with a more level playing field for business.
advertising and
(Not yet validated by External Validation Panel)
marketing rules:

Transposition of the
Unfair Commercial
Practices Directive
HSE Easy to follow examples of risk assessment for 34 lower risk £235m
Example Risk businesses including convenience stores, dry cleaners and
Assessments hairdressing salons.
(£163.3m validated by External Validation Panel as at May 2008)
CLG Reducing the number of licences required by landlords for low risk £207m
Repeal of part XI of multiple occupancy households (partially offset by burden of £87m
Housing Act 1985 from new licensing regime).
(£207m validated by the External Validation Panel as at May 2008)
BIS 1.2m companies can now send information including annual £182m
Electronic reports to shareholders by email, rather than hard copy.
communication
(£76m validated by External Validation Panel as at May 2008)
with shareholders
DCMS This Act reformed the alcohol and entertainment licensing laws £181.1m
Licensing Act 2003 in Britain into a single piece of legislation.
(£181.1m validated by the External Validation Panel as at May 2008)

Section 2  |  Chapter 1: Year 4: Progress so far 20


SIMPLIFICATION Description of savings Annual gross savings
MEASURES at December 2009

CLG 1.2 million pieces of electrical work a year are now certified by £136m
Competent Persons ‘competent persons’, rather than having to go through Building
Scheme Control inspection, saving around £110 per check.
(£132m Validated by External Validation Panel as at May 2008)
BIS Replacement of the complex Weights and Measures (Packaged £129m
(former DIUS) Goods) Regulations 1986 to provide a more consistent, certain,
Weights and Measures accessible and comprehensive law.
(£129m validated by External Validation Panel as at May 2008)
BIS Businesses no longer need to comply with statutory instruments £115m
Dispute Resolution as the Employment Act 2008 allows companies to follow the Acas
code of practice. This code sets out the principles to follow when
addressing disputes.
(£115m validated by External Validation Panel as at May 2009)
DH Pharmaceutical companies can now self-certify minor changes to £104.9m
Better Regulation of patient information on over-the-counter medicines, saving them
Medicines Initiative time and money whilst allowing the MHRA to concentrate on
(BROMI) Phase 1 scrutinising complex changes.
(£104.9m validated by External Validation Panel as at May 2008)

Section 2  |  Chapter 1: Year 4: Progress so far 21


HSE
Risk Assessment
"When I talk about what a risk assessment is,
I use a printed copy of the HSE's guide and
take people through it to establish good practice.
“The language is right because it’s everyday basic language.
And the presentation is very good. So they can go through it BIS
and do their own assessment properly. For small, voluntary
organisations, that’s really important.
Employment Guidance
Government has transformed the guidance that it provides on
“One group even wrote to us recently to thank us for making Employment Law. Guidance is now simple, easy to follow and
the process so much easier.” allows employers to take on new employees with confidence.
Eamon McGraph, Community Development Manager, The guidance focuses on particular areas of Employment Law
Age Concern Norfolk which businesses found the most burdensome or complex. The
Day centres play a valuable role in the lives of many older people guidance available at Business Link (www.businesslink.gov.uk/
but like any workplace they carry certain health and safety risks. employingpeople) covers all aspects of employers’ obligations,
and includes free access to interactive tools and documents that
According to Eamon McGrath, the problem of assessing those are quick and easy to use.
risks is now much easier, thanks to the Health and Safety
Executive’s website and their online tool, five steps to risk This has helped save businesses an estimated annual
assessment on www.hse.gov.uk/business/risk.htm £418 million in administrative burdens. BIS is now making this
guidance available directly to businesses in the form of a simple
HSE produces 34 example risk assessments for different desktop download that sets out clearly their obligations
types of low-risk organisations which bring combined savings throughout the employment lifecycle - from recruitment,
of £235 million per year. to retention and leaving.

Section 2  |  Chapter 1: Year 4: Progress so far 22


Administrative burden • The Department for Business,
Innovation and Skills (BIS) -
reductions: Progress by
Employment Law
individual departments
and agencies • The Department for
Communities and Local
Due to the nature of their Government (CLG) –
remit, three Departments are Planning Law
responsible for over 68% of
the total administrative burden • The Health and Safety
baseline (£13.14 billion). Their Executive (HSE) – Health
main policy areas impose the and Safety Law
largest administrative burdens The table on the next page shows
as they apply to most businesses departmental delivery to date
in the UK. and planned delivery for the
remainder of the programme.

Section 2  |  Chapter 1: Year 4: Progress so far 23


FIGURE 4: Progress by individual Departments

DELIVERY PLANNED DELIVERY

DEPT BASELINE TARGET TARGET MAY 2009 MAY 2009 DEC 2009 DEC 2009 MAY 2010 MAY 2010
BY MAY BY MAY
(£m) 2010 (£m) 2010 (%) (£m) (%) (£M) (%) (£M) (%)
BIS £4,489.0 £1,122.3 25% £902.8 20.11% £1,114.5 24.83% £1,137.5 25.34%
CLG £2,486.5 £621.6 25% £376.1 15.12% £483.1 19.43% £623.8 25.09%
HSE £2,022.5 £505.6 25% £382.7 18.92% £500.3 24.73% £540.0 26.70%
DH £1,201.9 £300.5 25% £157.1 13.07% £197.9 16.47% £196.5 16.35%
DfT £585.0 £146.3 25% £115.2 19.69% £115.5 19.75% £141.6 24.20%
DWP £471.0 £117.8 25% £136.0 28.87% £136.0 28.87% £136.0 28.87%
Defra £458.2 £114.6 25% £55.7 12.16% £90.3 19.70% £91.5 19.98%
MoJ £356.0 £89.0 25% £67.1 18.84% £68.8 19.32% £92.5 25.98%
DCMS £343.2 £85.8 25% £155.8 45.40% £158.2 46.19% £158.5 46.19%
DCSF £209.7 £52.4 25% £8.3 3.96% £24.6 11.75% £55.4 26.43%
HMT £158.9 £39.7 25% £67.4 42.42% £67.4 42.42% £105.4 66.33%
Food SA* £90.5 £22.6 25% -£68.7 -75.86% -£68.7 -75.86% -£24.7 -27.24%
Home Office £83.0 £20.8 25% £19.1 23.00% £32.0 38.49% £32.2 38.76%
ONS £48.7 £12.2 25% £6.4 13.14% £6.4 13.14% £9.3 19.10%
Charity Commission £36.6 £9.2 25% £1.1 3.05% £6.0 16.43% £6.0 16.4%
Cabinet Office £15.4 £5.4 35% £0.0 0.00% £0.0 0.00% £2.4 15.6%
GEO £5.7 £1.4 25% -£0.3 -4.39% -£0.3 -4.39% -£0.3 -4.39%
Forestry Commission £1.46 £0.4 25% £0.4 26.44% £0.4 26.44% £0.4 26.44%
DECC £76.97 N/A N/A -£4.7 N/A -£5.6 N/A -£14.4 N/A
Total £13,140.3 £3,286.64 25% £2,377.5 18.09% £2,926.8 22.27% £3,289.8 25.04%

*EU food and feed hygiene regulations, introduced on 1 January 2006, increased the Food Standard Agency’s burden
from £90.5m to £204m. Food SA project a reduction in gross admin burdens of £89m by May 2010.
4. Target delivery for cross-Government programme incorporating DECC baseline Section 2  |  Chapter 1: Year 4: Progress so far 24
The chart below shows that, FIGURE 5: Admin Burden Reduction Programme – Net trajectory May 2005 - May 2010.
following some under-delivery in Cautious and best case forecast by May 2010.
May 2009 against Departments`
December 2008 forecasts, in £4,000
December 2009 the programme
is on track and is now delivering
£3,500
£2.9 billion in net annual savings, £3.35bn
£3.290bn
meeting the predicted December
2008 delivery forecast. £3,000 £3.191bn
£2.927bn
£2.89bn
A risk-based analysis of the £2.635bn
programme has been carried £2,500
out to predict the best-case and
£2.378bn
cautious estimates of final
delivery in May 2010. The cautious £2,000
estimate takes into account £1.95bn
£1.66bn
potential delays in the take-up of
£1,500
some measures, reflecting that,
as a result of recent economic
conditions, some measures are £1,000
being taken up by business more
slowly than originally anticipated. £0.67bn
The cautious analysis anticipates £500
that the programme will deliver £0.35bn
£3.2 billion by May 2010 and that Delivered Forecast
£0
the full £3.3 billion in net annual
savings will be delivered by May 2006 May 2007 May 2008 Dec 2008 May 2009 Dec 2009 May 2010
October 2010. External Validation Panel established
SP09 - best-case forecast to May 2010
SP08 - net reductions
Target by May 2010 based on Dec 2009 baseline
SP09 - cautious forecast to May 2010

Section 2  |  Chapter 1: Year 4: Progress so far 25


Ensuring businesses, third and public sectors
are feeling the benefits on the ground
External Validation Panel

Eve Salomon Chair of EVP 2009


Independent Chair: former member of the Better Regulation Commission
“The External Validation Panel has a vital role in critically assessing Departments’ simplifications.
This independent challenge gives credibility to the Administrative Burden Reduction Programme by
ensuring that Departments provide evidence both to support the savings that are claimed and to
demonstrate that the measures put in place by the Government are actually being felt on the ground.”

The External Validation Panel The Panel provides a robust The focus of the External
was established in 2008 in challenge and quality assurance Validation Panel (EVP) is to test
response to recommendations role and is made up of the assumptions underpinning
from external stakeholders, representatives from the the reported administrative
including the National Audit Confederation of British burden reductions to ensure the
Office. The Government agreed Industry, the Institute of changes have been effectively
that, as more measures started Directors, the British Chambers communicated to business and
to deliver opportunities for of Commerce, the Federation of that business is actually
businesses to make savings, Small Businesses and the benefiting from the savings
external scrutiny to assess Trades Union Congress. claimed by Departments.
whether savings were being felt
by business was essential.

Section 2  |  Chapter 1: Year 4: Progress so far 26


In 2008, the EVP chose to In 2009, the Panel took a slightly
Defra scrutinise the top simplification
measures Government
different approach to increase
the breadth of their scrutiny of
NetRegs Departments implemented the programme; by making sure
NetRegs (www.netregs.gov.uk) is a web-based service offering between May 2005 and May that each Department involved
clear, reliable guidance to UK businesses on how to comply with 2008, covering over 80% of the in the Administrative Burden
environmental legislation and reduce their environmental reported gross annual savings. Reduction Programme had
impacts. It provides free up-to-date guidance specifically tailored Departments were made been reviewed by the Panel, at
to the needs of small and medium sized enterprises (SMEs). It responsible for the scrutiny least once. As a result, 77.5%
also serves a wide range of business advisory bodies and trade of smaller measures. of the Programme’s total gross
associations across the UK. The guidance covers 36 categories savings delivery to May 2009
Following the Panel’s review,
of environmental topics and over 110 business sectors. was validated.
gross savings of an estimated
In a July 2009 user survey, 94% of businesses rated it as a ‘good’ £1.86 billion were validated, The External Validation Panel
or ‘excellent’ business tool. covering 87% of reported delivery will meet again in Summer
up to May 2008. 2010 to review and validate final
The EVP validated £10 million of savings from the NetRegs delivery across the Programme,
programme (which should rise to £12.5 million by 2010) and To complement this scrutiny,
taking into account the savings
held up NetRegs as a good example which was well-evidenced Departments and the BRE carried
realised since May 2009.
to demonstrate that it brings real savings and improvements out their own validation exercises
to business. on smaller simplification
measures (over £10 million) so that
overall 92% of reported delivery to
May 2008 had been verified.

“The External Validation Panel provides a necessary credibility check to the administrative
burden savings that Government Departments claim. The CBI is pleased to have played a
part in scrutinising this year’s claims against the experiences of business.”
Lucy Findlay, Confederation of British Industry

Section 2  |  Chapter 1: Year 4: Progress so far 27


FIGURE 6: Overview of validation

Total gross administrative burden reductions £1.985bn


Validated by EVP and BRE/Departments at May 08
Total gross administrative burden reductions £454m
validated by EVP in May 09
Total gross administrative burden reductions £3.147bn
delivered at May 2009
% gross administrative burden reductions 77.5%
validated at May 2009

“The FSB was pleased to have been involved with the “The External Validation Panel is essential to the
External Validation process of the simplification work credibility of the Administrative Burden Reduction
of some Government Departments over the last year. Programme. The Panel’s scrutiny of claimed savings not
It is extremely important that the assumptions and only engenders confidence in the system from external
calculations that Departments made are tested against stakeholders, but also allows civil servants the benefit
what business believes to be the case. Our findings on of a different perspective on their progress. Continuance
the Panel demonstrate that there are differing opinions of this type of engagement is vital if policymakers are to
about how a saving can be calculated and what level of truly understand the views of the business community.”
evidence is needed. The FSB would welcome continued Steve Hughes, British Chambers of Commerce
involvement in this work.”
Sara Higham, Federation of Small Businesses

Section 2  |  Chapter 1: Year 4: Progress so far 28


CLG
Planning Portal
"Switching to electronic submission has allowed us HMT
to replace a slow, laborious process with one which
is quick and simple," explains David Morton. Paperless Settlement
This simplification measure has been in force since March 2009.
“An added bonus is that the system checks all the information is It lifts the previous requirement for paper settlement and transfer
inputted correctly before allowing submission. It is impossible to of title for fund managers, stockbrokers, financial advisers and
submit an incomplete planning application. other intermediaries by allowing electronic settlement. As the
“Using the portal to submit applications electronically reflects asset management industry develops, electronic systems are
our aims on many levels. Not only do we save paper waste but becoming increasingly efficient and this measure is expected
the system allows our clients to go online and look at the to save businesses up to £115 million on an annual basis.
application at any time, anywhere in the world.” However, the logistics of rolling out a paperless settlement
David Morton, Senior Architect, Home Architects. platform to the asset management industry is challenging as it
comes at a time of difficult market conditions for firms who have
Electronic processing removes much of the administration their priorities elsewhere. As a result take-up by business has
usually associated with submitting planning applications and been slower than anticipated, however delivery by May 2010 will
has saved businesses almost £40 million annually. still be considerable.

Section 2  |  Chapter 1: Year 4: Progress so far 29


HMT
Paperless Settlement
" It could take up to ten days or more to
settle a UK fund transaction," says Andy.
"We estimate that settlement will now take
“The TUC is pleased to have been part of the External
place more regularly in just four days." Validation Panel; it is very important that the experience
Andy Rudd, Product Manager, Euroclear UK & Ireland of those affected by regulation is brought to bear in
scrutinising the work Departments are doing to make
Euroclear, based in Brussels, owns the UK’s central securities
depository, which specialises in the settlement of securities sure that regulation is effective, simple and accessible.”
transactions. Its paperless approach in settling transactions, Sarah Veale, Trades Union Congress
primarily in bonds and equities, is based on electronic debits
and credits of cash and securities positions.
“The External Validation Panel is a necessary reality
Before the recent change in legislation, transaction processing
for one remaining UK asset class – investment funds – which is
check on the empirical approach to improved
highly prevalent within the asset or fund management sector, regulation. The examination of Departmental
continued to be carried out in paper form. awareness-raising activities and a focus on ensuring
the impact and timing of improvements in the real
Andy Rudd explains: “The manual process meant completing the
word are really important functions of the EVP.”
transaction was time consuming and costly.”
Alexander Ehmann, Institute of Directors
Now these settlement processes for the fund management
sector and those investing in funds can be conducted electronically
potentially saving business £115 million annually by May 2010 .

Section 2  |  Chapter 1: Year 4: Progress so far 30


Chapter 2

The Third Sector

2009 achievements The new Charitable Incorporated


Organisation (CIO) will be the first Charity Commission
The third sector is included in the
Government’s strategy to reduce
incorporated legal structure Increased threshold for external
administrative burdens by 25% by
designed specifically to meet the examination of accounts
needs of charities as enterprises.
May 2010. Many simplification
measures, particularly those
This means dual registration with " I am delighted that the threshold at which
benefiting small business, also
the Charity Commission and charities need to have their accounts externally
Companies House is now examined is to rise from £10,000 to £25,000
benefit the third sector. In addition,
possible. The CIO will reduce red
the Government has made good
tape and provide charity trustees
from 1 April 2009.
progress in addressing specific
with protections similar to those “Many village halls are charities, run by
administrative burdens on the
held by directors of limited
third sector.
companies.
volunteers, but as public buildings there are many
Streamlined Business rules and regulations which they have to comply
Making Life Simpler with. Village hall committees have sometimes had
Practices
for Small Charities to pay someone to examine the accounts so this
Simplifications within the 2006
Charities Act make it easier for
Similar to the Better Regulation will result in cost saving.”
small business strategy, the
third sector organisations to Wendy Dacey, Village Halls Adviser
Cabinet Office and Charity
achieve economies of scale for the Community Council for Berkshire
Commission have a particular
through mergers. Although this is
interest in supporting small
still an area of development for
charities. Simplifications made
the sector, there are signs that
in 2008 are this year beginning
organisations are beginning to
to impact positively on the sector.
benefit from the change in the
legislative framework.
Section 2  |  Chapter 2: The Third Sector 31
Making Employment The Department for Business,
23,000 Small Charities Benefit Law Easier Innovation and Skills (BIS) and the
OTS have made a specific effort in
Benefits to a typical small charity with annual Regulations such as employment 2009 to help ensure that third
income of £10 - £25,000 law impact as much on the third sector employers have better
sector as other sectors. It can access to the latest employment
1. Need only complete part of Annual Return form. be challenging to keep up to date guidance through Business Link,
2.  No longer required to be subject to external scrutiny with changes to employment law which has brought £418 million of
(independent examination or audit). which is why the Office of the annual savings to employers in all
3.  No longer need to routinely submit accounts and Third Sector (OTS) is launching sectors. This information will be
Trustees Annual Reports to the Charity Commission. a Law & Regulation web portal. available on the OTS Law &
This online service provides a Regulation web portal by
4.  More accessible, consistent advice and guidance summary of regulatory changes
via Charity Commission Direct http://www. December 2009.
which have an impact on the sector.
charitycommission.gov.uk/Library/tcc/pdfs/ccdirect.pdf
5.  Easier and more convenient way to update
registration details online.
6.  Some charities will benefit from a simplified process:
• for spending small amounts of capital;
• to facilitate mergers; and
• to streamline trustee indemnity insurance and
trustee payments for the provision of services.
7.  Stronger influence through partnership work with
small to medium charity umbrella bodies.
This represents over £1.66 million of savings.

Section 2  |  Chapter 2: The Third Sector 32


Wider Simplification
BIS Reducing Funding & Monitoring Burdens
Employment Law Organiser: Funding and monitoring is often highlighted as imposing the most
Better access to advice guidance burden on the third sector.

The Department for Business, Innovation and Skills (BIS) has In 2009 the Office of the Third Sector published ‘Principles of
launched a free desktop tool. Proportionate Monitoring’5 and collaborated with the National Audit
Office to publish ‘Intelligent Monitoring’6. These reports encourage
Employment Law Organiser provides a summary of the key Government Departments to take account of the third sector in
obligations that every employer in a small to medium sized creating less burdensome monitoring regimes.
enterprise (SME) needs to meet – from small business managers
to charity directors – and includes links through to the relevant A number of Departments including DCSF, DfT and MoJ have
free guidance on the Business Link website. embedded the principles of these reports into grant-making practices.
This will begin to benefit third sector organisations in 2009 to 10.
As many third sector organisations don’t have a dedicated HR team
to help out, the new tool will make it much simpler for bosses to
comply with their obligations, saving them time and money.
Sitting as an icon on a PC desktop, Employment Law Organiser
can be opened quickly and used when needed.
The Employment Law Organiser will be automatically updated as
and when new legislation is introduced helping employers keep up
to date with their obligations.
Employment Law Organiser is in addition to the £418 million
of savings delivered through the employment law guidance
programme.
www.businesslink.gov.uk/employmentlaworganiser

5. http://www.cabinetoffice.gov.uk/media/216752/principles.pdf
6. http://www.nao.org.uk/guidance_and_good_practice/toolkits/intelligent_monitoring.aspx?alreadysearchfor=yes Section 2  |  Chapter 2: The Third Sector 33
DCSF
Proportionate Monitoring of Grants
"We have to answer a number of key questions
about how we run the project, what we've
achieved, how we've done it.
“It used to take me about two hours to do the report and we had
to send it in four times a year. Now the reporting process has
changed to twice a year and I can get it all done in an hour, which
is a real time saver. And the new templates are much easier to
use. It’s very valuable for us to save that time. Having the ability
to produce very simple but informative paperwork in a far
reduced style is fantastic for us.”
Carol Olley, Project Manager, Transplant Sport

The charity Transplant Sport currently receives a three year


grant from the Children, Young People & Families
grant programme.
Project Manager Carol Olley very much welcomes the recent
move by DCSF to simplify the process by which she has to report
back on how the money is being used and cut back on red tape
and administrative burden. For Carol, the reduction in paperwork
is now proving much less time consuming.
Overall, these changes are estimated to have saved
organisations £30,000.

Section 2 | Chapter 2: The Third Sector 34


Chapter 3

Helping Small Businesses

Small and medium sized strategy has embedded the


enterprises (SMEs) are ‘Think Small First’ principle 1. Departmental ‘Think Small First’ Approaches
critical to the success of the into new policy development.
UK economy. SMEs represent The ‘Think Small First’ principle is embedded across Government.
• Reducing administrative From December 2008 Government is committed to explain why it
99% of businesses in the UK.
burden: Through the has included small business in the remit of all secondary
This includes sole traders.
Administrative Burden legislation. This system will apply to primary legislation from
The contribution SMEs make
Reduction Programme, the the 2009-2010 Parliamentary session.
to UK GDP is important both for
Government has a commitment
maintaining employment and
to reduce administrative
economic activity through the
burdens imposed by existing Examples of
downturn and providing growth
regulations for all firms,
as we look towards recovery.
including small firms, by
Departmental Think
The Government’s commitment 25% by May 2010. Small First Approaches
to reducing the administrative The Department for Transport
• Improving Guidance: has adopted the ‘Think Small
burden of regulation for small
An ongoing focus of the First’ principle in its approach to
businesses in the UK is most
Administrative Burden implementation of an EU Recast
clearly demonstrated through
Reduction Programme has Framework Directive.
three initiatives.
also been to improve guidance,
• Think Small First: The 2008 specifically to assist small
Enterprise Strategy set a new firms. This has also led to
approach to new and existing considerable savings for
regulations for firms employing small businesses.
fewer than 20 people. The

Section 2  |  Chapter 3: Helping Small Businesses 35


The Government has simplified • private companies no longer
DfT the company law framework prohibited from providing
Individual Vehicle Approval through the Companies Act 2006. financial assistance for the
The Act has now resulted in purchase of their own shares;
"After using the new Basic IVA regulations on annual savings of £390 million
• simpler rules on share capital,
many occasions, I wanted to write to you and for businesses by simplifying the
removing provisions that are
thank DfT and BIS for really listening to and regulation and using a ‘Think
largely irrelevant to the vast
accommodating our representations over the last Small First’ approach. The
majority of private companies
changes include:
three years. and their creditors; and
• separate and simpler model
“We only import very low volumes of left-hand drive North • separate code of accounting
Articles of Association for
American vehicles built to FMVSS and CMVSS standards and and reporting requirements
private companies, reflecting
they cater for a tiny enthusiast market in the UK. The complicated for small companies.
the way small companies
Recast Framework Directive has been implemented in a
operate; These changes make it easier
proportionate way for the micro industry sector that we represent.”
to set up and run a company,
• private companies not required
American Imports Agents Association encourage a long-term
to have a company secretary;
investment culture and provide
The Department for Transport used an EU directive as an • private companies not required additional flexibility for investors
opportunity to introduce alternative national schemes for to hold an annual general in small firms.
manufacturers building vehicles for sale only in the UK. meeting;
Individual Vehicle Approval (IVA) is also available to independent
importers of vehicles from outside the EC. These national • making it easier for companies
schemes will be significantly cheaper than the cost of applying to take decisions by written
for approval under the EC scheme. resolutions;

Section 2  |  Chapter 3: Helping Small Businesses 36


BIS 2. Reducing Administrative Burden
Company Law on existing regulations
"As a designated member in a husband and wife The Health and Safety Executive (HSE) has introduced new help for
Limited Liability Partnership (LLP), I just SMEs. A risk assessment and policy template has been developed
wanted to say thank you so much for the clear for lower risk SMEs. This template combines the requirements of
a risk assessment, health and safety policy and written record of
drafting of the new LLP Application of health and safety arrangements into one document, saving time,
Companies Act 2006. resources and costs.
“Your approach of taking the relevant sections of the 2006 Act The template was launched on 1 September 20097.
and restating them in full as they apply to Limited Liability
Partnerships is SO HELPFUL! I know the Government was trying
to “think small” in terms of the drafting and implementation of 3. Improving Guidance
the Companies Act 2006, but I was a bit concerned that there
would be all sorts of difficult consequential changes for LLPs, The Government has an ongoing programme to improve
however I think you have now avoided this. employment guidance, specifically in relation to small businesses.
One innovation has been the development of a new desktop tool,
“What you did with the Small LLP Accounts Regulations was
the Employment Law Organiser,8 which includes all the facts
also very helpful in restating the full requirements. Also, the
small businesses need to know regarding employment law. It
whole approach of giving clear implementation dates well
provides small businesses with access to advice and tools, is
ahead is really helpful.”
updated as and when new legislation comes through and has a
Dr Gareth G Morgan, The Kubernesis Partnership calendar function that acts as a reminder for small businesses.

These changes have brought £900,000 savings for businesses,


as part of £390 million wider savings from changes to
company law.

7. http://www.hse.gov.uk/risk/risk-assessment-and-policy-template.doc
8. www.businesslink.gov.uk/employmentlaworganiser Section 2  |  Chapter 3: Helping Small Businesses 37
DCSF BIS
Removal of requirement National Measurements Office –
to send information in hard copy Using a statistical sample to test products
"Having these documents / policies and " We are a small company and these changes
procedures on the website means that they are are really welcome, particularly during the
easily accessible for parents and also updated current economic downturn. We anticipate the
when necessary without having to send out paper new policy will save our business approximately
copies every time." £15,000 every year, a significant and very
Grantham Farm Montessori School welcome benefit."
David House, Technical Advisor of Beaumont TM Ltd
The school, an SME, welcomes the removal of the requirement to
send out hard copy information to parents, allowing them to Previously, regulations required each individual alcoholic
publish information online instead as a “step in the right direction”. spirit measuring instrument to be tested to ensure it met the
The removal of this requirement will save schools £16.3 million annually. legal requirements.
Improvements in manufacturing techniques now mean that some
manufacturers can produce instruments in consistent ‘batches’ -
if one instrument passed the test then it was probable that all the
instruments in the batch would pass the test.
Following consultation, the National Measurement Office
amended the legislation to allow the option of testing samples
of the batch as opposed to testing every instrument.

Section 2  |  Chapter 3: Helping Small Businesses 38


BIS
The National Measurement Office
Self-verification of equipment BIS
"Like all responsible businesses we strive to Employment Law Tools
reduce our carbon emissions and the changes have " It is important to be on top of how to manage
enabled us to test, adjust and verify in one visit. your employment obligations if you want to be a
This has allowed us to make better use of our successful and competitive business. As a small
resources overall including a reduction in costs in business, you have to watch every penny and get
excess of £200,000. Our customers also benefit as much support as possible. I subscribe to the
from the single visit, through reduced charges, Business Link newsletter service and look at
less disruption, and not having inaccurate the site.
dispensers out of action." “The tools on the site are very useful and simple to use.
Michael Hollier, MD, Retail & Forecourt Solutions Ltd When I need specific advice I will turn to the professionals but
do a lot of the groundwork myself, and using the site isn’t time
"This will benefit the nine and a half thousand consuming or complicated.
fuel retail sites in the UK, at least seven and “We often employ part-time staff and being up to date with the
a half [thousand] of these being small to latest in employment law and legislation helps us to be confident
medium-sized enterprises." when it comes to recruitment decisions.”
A spokesperson from the Petrol Retailers’ Association John Charles, Catering2Order

Manufacturers, installers and repairers of trade equipment John Charles established Catering2Order in 2007 and now
are now able to self verify after they have adjusted equipment employs 15 staff. Since the early stages of setting up his
to improve its accuracy. business, he has used many of the tools available on
www.businesslink.gov.uk
This change has mainly benefitted petrol and diesel retailers
whose equipment is subject to quite frequent repair. It has saved Improvements to employment law guidance have saved
the retail fuel industry approximately £615,000 a year. businesses £418 million a year.

Section 2  |  Chapter 3: Helping Small Businesses 39


SECTION 3

Wider Simplifications
(outside of Admin Burden
Reduction Programme)
Chapter 1 T
 he Public Sector
Chapter 2 S
 implifications at the European level
Chapter 3 R
 educing policy burdens and irritants

40
Chapter 1

The Public Sector

Reducing bureaucracy Cutting Bureaucracy for our 2009 achievements in 30% Reduction in Number
in the Public Sector Public Services: Key Aims reducing bureaucracy in of Requests for Information
The 2007 Government strategy, • Fewer and better co-ordinated the Public Sector In 2007, eleven Government
“Cutting Bureaucracy for our requests for data from the This year there has been real Departments identified and
Public Services” set out to front line – 30% reduction in progress on reducing the number published figures which meant
address concerns from frontline information requests from of information requests and on that, for the first time,
workers that too much time was central Government to the reducing the burden of Government had a picture of what
being spent on unnecessary public sector front line by 2010; information requests from information is being requested
paperwork and requests for central Government. The bulk from the public sector frontline.
• A reduction in the stock of
information from central of delivery has now been made,
unnecessary bureaucracy in Nine Government Departments
Government Departments. which is a positive and tangible
the areas the front line cares are now reducing the number of
The strategy seeks to deliver a step in reducing central
most about; information requests9. To date,
tangible and permanent reduction Government bureaucracy for a 30.8% reduction has been
in unnecessary Government • Better engagement with the public sector front line. delivered across these nine
bureaucracy to allow frontline frontline workers to identify
Departments, five of which have
staff to spend more time and remove bureaucracy; and
already delivered a reduction of
delivering key services.
• Better regulation that is at least 30%.
understood and mirrored
through the public service
delivery chain.

9. A
 s the Department of Health is reducing the ‘number’ of ‘data line’ requests in Social Care (28.6% to date) and
the overall ‘burden’ of data requests in Healthcare they have not been included in this aggregate. Healthcare
burden reduction is a larger programme of work and is recorded separately. Section 3  |  Chapter 1: The Public Sector 41
FIGURE 7: Delivery on the reduction in number of information requests from central Government

DEPARTMENT NUMBER OF INFORMATION NUMBER OF INFORMATION EXPECTED NUMBER OF


REQUESTS IN 2007 (BASELINE) REQUESTS IN 2009 INFORMATION REQUESTS
IN MAY 2010

MoJ 82 57 54
CLG 148 91 91
DWP 17 11 8
Cabinet Office 8 8 8
Ex-BERR10 21 15 15
Defra 20 8 8
DfT 38 26 26
DCMS 33 30 30
Home Office 111 85 75
TOTAL 478 331 315

10. The ex-BERR baseline includes data streams that are now the responsibility of either DECC or BIS Section 3  |  Chapter 1: The Public Sector 42
FIGURE 8: Reduction of information requests

160

140
NUMBER OF INFORMATION REQUESTS

120

100

80

60

40

20
Number of Information Requests in 2007 (Baseline)
Number of Information Requests in 2009

£0 Expected Number of Information Requests in May 2010

MoJ CLG DWP CO Ex-BERR DEFRA DFT DCMS HO

DEPARTMENT

Section 3  |  Chapter 1: The Public Sector 43


30% Reduction in Burden of FIGURE 9: Delivery on reduced burden of information requests
MoJ Requests for Information
DEPARTMENT MEASURED IN... 2007 DATA % REDUCTION BY
Crown Court Two Departments are reducing BURDEN
BASELINE
DECEMBER 2009
the burden of information
checks stopped requests they impose on public DCSF Cost £6,400,000 9% (-£595,000)
The number of data items sector frontline staff through a DH Staff resource Equivalent to 24.3% (-120.8
needing verification by court mixture of removing requests HEALTHCARE approx 498 FTE person years)
completely, reducing the staff over a year.
staff has been reduced by
an estimated 10-15,000. frequency of necessary requests
This was a direct product and making data returns more Overall, six of the eleven
of a Crown Court Data efficient and streamlined. Departments are on track to
Quality Steering Group as Reducing the burden of deliver a reduction of at least
a partnership between the information requests has proved 30% by number of information
HM Court Service, Office more challenging than anticipated requests and/or by value by
for Criminal Justice Reform for the Department of Health (DH) May 2010.
(OCJR) and Ministry of and the Department for Children,
Justice statisticians. They Schools and Families (DCSF). To
examined the flow of data date, DH has delivered a 24.3%
from courts to Government reduction in burdens on
statistical publications, healthcare professionals, the
and how this could remaining delivery is expected
be streamlined. by October 2010. DCSF has
delivered a 9% reduction to
date and the remaining delivery
is expected by the end of the
2011/12 academic year.

Section 3  |  Chapter 1: The Public Sector 44


Engaging with Other groups scrutinising the
the frontline and data burdens being imposed on CLG
reducing the stock the public sector frontline include Simpler Planning Applications
the Bureaucracy Reduction
of unnecessary Group in the Department for "At Teesdale we have worked hard to encourage
bureaucracy Business. This group aims to electronic submission because it's a real help to
A range of Government minimise burdens imposed by the administration team. It cuts out the time-
Departments now have public the Skills Funding Agency and the consuming process of scanning plans and linking
sector stakeholder forums in Young People’s Learning Agency.
drawings to files and eliminates the need for
which front line workers
scrutinise the need for
Also the National Police data entry because the information drops
Improvement Agency helps
information requests from automatically into our back office systems.
to drive the reduction of
central Government as well as
bureaucracy for the Police. “More than 65% of our applications are now submitted
overseeing the reduction in stock
electronically and the team can process ten a day compared
of requests. For example the Finally, DCSF’s Implementation
to three paper forms. We are a small authority with limited
Reducing Data Burdens Steering Review Unit carries out a similar
resources and that makes a massive difference.”
Group monitors information role in the education sector.
burdens on local authorities. Maria Ferguson, former Development Control Manager
In order to address the burden
The steering group is led by the at Teesdale District Council
of bureaucracy throughout the
Department for Communities
public sector delivery chain all of By May 2010, the ability to submit applications electronically and
and Local Government and brings
the above groups actively engage increased consistency in the Planning System will be saving local
together representatives of
with intermediary and delivery authorities an estimated £85m in addition to private sector
central Government
bodies such as local authorities savings of £137 million.
Departments, local Government,
and strategic health authorities.
the Local Better Regulation Office
and the Audit Commission.

Section 3  |  Chapter 1: The Public Sector 45


Wider work on improving public sector savings
DCSF The cutting bureaucracy strategy complements the wider Treasury-
Special Educational Needs led public sector efficiency programmes: the Value for Money
Programme (2007); the Public Value Programme (2008) and the
(SEN) Statementing Process Operational Efficiency Programme (2008). All three programmes are
In 2006/07 DCSF asked its frontline workers to identify which were generate significant public-sector efficiency savings and contributing
the key irritants in each of its three sectors (early years, schools to reducing unnecessary bureaucracy in the public sector.
and 14-19 years). Both early years and schools put the SEN In addition to the savings from reducing central government data
statementing process at the top of the list. A project was set up in requests set out above, Departments’ simplification plans include
Spring 2007 and reported in May 07, to look at the administrative details of a range of ways in which they are improving efficiency and
processes inherent in statementing. It identified a number of reducing bureaucracy in the public sector. The examples in the 2009
areas, mainly to do with data transfer between schools and Simplification Plans, which form part of the wider efficiency
authorities, where enhanced online systems could significantly programmes, illustrate £1,322.7 million of annual savings delivered
reduce the administrative burden on schools while retaining by December 2009 with projections of £1,453.8 million of savings being
necessary assurances. Several options have been considered to realised by May 2010.
see if it would be possible to link into existing work. DCSF is now
developing a system with the aim to have some results for Going forward, the Government has recently published a plan for
discussion in 2010. further reducing the burdens on the front line as part of ‘Putting
the Front-line First: Smarter Government’11.

11. ‘Putting the Front-line First: Smarter Government’: HM Government, CM 7753, December 2008 Section 3  |  Chapter 1: The Public Sector 46
Chapter 2

Simplifications at the European level

“I am committed to a policy Under the leadership of The Commission has estimated


that continues to remove Commission President Barroso the administrative burden
unnecessary administrative and former Vice-President stemming from the 72 legal acts
burdens and provides the legal Verheugen, EU Better Regulation in scope of the EU Simplification
certainty companies need to has come a long way. Steps have target to be approximately €123.8
make long term investments. been taken to improve both the billion as of 2005. VAT and
By 2012 the next Commission stock and flow of EU legislation company law were found to be
will deliver on our commitment and to embed the ‘Think Small the most burdensome fields,
to reduce administrative First’ principle in the EU policy- together responsible for over
burden by 25%.” making process. At the Spring 80% of the total.
European Council in March 2007,
President of the European On 22 October 2009 the
EU Heads of State unanimously
Commission, José Manuel Commission published a report
agreed to set a target to reduce
Durão Barroso, setting out how the EU is
gross administrative burdens
progressing to achieve the 2012
3 September 2009 arising from EU legislation by
target. It lists measures already
25% by 2012. The UK Government
taken, legislative proposals which
played a key role in securing this
are pending agreement by the
target and is working hard to
Council and Parliament, as well
deliver it.
as additional ideas for the new
Commission to consider.

Section 3  |  Chapter 2: Simplifications at the European level 47


UK engagement with the EU
The UK is actively engaged with
HSE other Member States to
encourage the EU institutions
Sensible Risk Management to deliver administrative burden
across the EU reductions that will make a
tangible difference for businesses
HSE successfully influenced the direction of a European and others.
Campaign on risk assessment, led by the European Agency
for Safety and Health at Work. In line with HSE’s Sensible Risk In some areas, the European
Management campaign, HSE proposed that the European Commission is following the UK’s
Campaign for 2008-09 should emphasise that good risk lead. For example, it is promoting
assessment is not about completing paperwork for its own sake the Health & Safety Executive’s
but is about identifying and taking practical actions that manage approach of producing clear and
hazards and risks so that workers are protected. The Agency simple guidance for employers on
agreed to this approach. how to assess risks in the
workplace, thus reducing the
need to pay for external advice.
In other areas, it is responding to
UK suggestions for simplification.
For example, the Government
called on the Commission to
simplify the Biocidal Products
Directive in 2007.

Section 3  |  Chapter 2: Simplifications at the European level 48


HSE DfT
The Biocidal Products Directive Cutting Paperwork for Drivers and
This Directive regulates biocides - products used to control Making Our Roads Safer
harmful organisms. Biocides include disinfectants, wood and
European legislation has changed many of the rules on drivers’
other preservatives and pest control agents.
hours and how they should be recorded to help make our roads
Problems with the Directive have slowed the review of whether safer, while making it less burdensome for those affected to
biocidal substances are suitable for use in commercial products, comply with the law.
to such an extent that a decade after its adoption there are almost
One of the biggest changes is a new requirement to equip all new
no biocidal products approved under it.
large commercial vehicles (mostly trucks and coaches) with
Furthermore, the high cost of supporting active substances digital tachographs. A tachograph is a device that records time
through the review process has resulted in many existing biocidal and distance travelled, and digital tachographs significantly
products being withdrawn from the market for economic reasons. reduce the average time needed to record this information. The
This has hit SMEs particularly hard. Department for Transport has estimated that this change to EU
law could save UK operators £15 million in 2009, £14.4 million of
In response to the UK Government’s call for the Directive to be which has already been validated by the External Validation Panel.
simplified to address these problems, the Commission adopted This is set to rise as an increasing number of new vehicles
a proposal to revise this Directive in June this year. The proposed installed with digital tachographs come onto our roads.
Commission Regulation would provide the option for certain
biocidal products to be authorised once at Community level
instead of in each Member State in which they are placed on the
market. In addition, the proposal sets out more flexibility in
meeting data requirements that need to be submitted as part of
the authorisation process; and proposes mandatory data sharing
with regard to testing of biocidal products that has been
undertaken using vertebrate animals.

Section 3  |  Chapter 2: Simplifications at the European level 49


Risk assessment work carried The Government will do its
out by the Food Standards Agency Increasing permitted levels utmost to facilitate swift
was instrumental in an of contaminants in Cereals agreement of European
agreement reached by the measures that will reduce
Standing Committee on the Food "This has been an extremely important issue burdens on UK stakeholders.
Chain and Animal Health. The to address for ACFM and has required much Departments will continue to
risk assessment identified that effort, trust and co-operation from all involved. report on savings resulting
there was no significant risk to from changes to, or better
consumers of increasing the “We have found working with you and your team to implementation of, EU law
maximum permitted level for be very constructive and you have offered guidance and advice in future editions of their
zearalenone (ZON) for some throughout the process which has contributed hugely to the Simplification Plans.
high-fibre breakfast cereals. The results achieved. We look forward to continuing this partnership
Committee therefore agreed a in the months and years ahead.”
temporary increase in June 2009. Ken Wood, Chairman of the Association of Cereal Food “To deliver on our pledge
Manufacturers Ltd to reduce burdens on
The largely UK-based production
businesses by 25% by 2012,
industry needed this relaxation as
They wrote to the Head of Policy expressing their thanks for we must redouble our efforts
adverse weather conditions in the
the hard work of the Agency team involved. to regulate more effectively
previous year’s harvest had had a
and more rigorously assess
serious impact on consumer
impacts of draft legislation.”
choice and market supply.
Letter from Prime Minister,
Gordon Brown, to the President
of the European Council, 28
October 2009

Section 3  |  Chapter 2: Simplifications at the European level 50


Improvements to
incoming European
legislation
The UK has also worked hard to The EU Services Directive
influence improvements in the
quality of new European
"This will be an opportunity for smaller authorities to
legislation. Proof of this be able to put their processes online at minimal cost
improvement is the Commission’s given that so much is being provided by BIS."
revised guidelines for officials on
James Hann, Licensing Manager, Ashford Borough Council
how and when to do impact
assessments published in
“Have you ever thought of selling your services in the EU? For small
January 2009. A new and
business this is now much easier through the implementation of the “I am committed to smart
welcome move towards greater
Services Directive and the new Points of Single Contact. Information regulation, and I want to
openness was the Commission’s
and formalities about all EU countries can be found online from reiterate that simplification
public consultation on the
your desktop. This Directive has huge potential for small service of procedures and a
proposed changes. Based on its
providers to tip their toes into EU markets and expand their reduction of administrative
experience of successful Better
activities abroad. An opportunity not to be missed!” burdens on business,
Regulation initiatives at the
particularly SMEs, will
national level, the UK Tina Sommer, Chairman International Affairs, remain a priority in the next
Government pushed for a number Federation of Small Businesses Commission. This task, just
of delivered Commission
like the Impact Assessment
improvements: consultations on The EU Services Directive will be brought into force in the UK on Board and ex-post
complex proposals, or those 28 December 2009. The aim of the Directive is to help open up the evaluation, will be placed
conducted during holiday periods, internal market in services further by making it easier for service directly under my authority
should be extended beyond the providers to set up business and offer services in other EEA states. to fully reflect the priority
minimum eight weeks; impact This is expected to increase output in the UK by an estimated I give to it.”
assessments will be carried out £4 billion to £6 billion per year, increase employment opportunities
for some secondary legislation and increase trade. UK SMEs in particular are set to benefit because President of the European
(“comitology”) and there is now they are disproportionately affected by barriers to establishment Commission, José Manuel
greater focus on quantifying costs and account for 44.2% of the UK service sector. Durão Barroso
and benefits. 15 September 2009

Section 3  |  Chapter 2: Simplifications at the European level 51


Chapter 3

Reducing policy burdens and irritants

The Government has not set a Better Regulation Agenda,


Definition target for reducing policy costs
within the current programme.
building on the current
programme, Government
Policy burdens are the costs However, Departments are has committed to reducing
inherent in meeting the aims constantly looking for the policy costs associated
of regulation. These may opportunities to simplify with regulations by £5 billion
impose capital costs (e.g. regulation. As part of the ongoing between 2010 and 2015.
purchasing new equipment)
or impose cash costs or
productivity costs (e.g. FIGURE 10: Gross Policy savings for private and third sectors
offering a pension scheme
Delivery to date PROJECTED
or extending annual leave
entitlement for employees). May 06 May 07 May 08 May 09 Dec 09 May 10

Policy costs differ from £221.3m £736.8m £917.6m £1,071.2m £1,190.0m £1,464.6m
administrative costs which
are incurred in gathering
information about a firm’s
activities and providing
evidence of compliance.

Section 3  |  Chapter 3: Reducing policy burdens and irritants 52


Policy Burdens: Process by Individual Department and Agency
The table below highlights some of the policy savings Departments have implemented
that will benefit private and third sector organisations.

FIGURE 11: Top policy savings for private and third sectors between 2005-2009 (figure continues on the next page)

POLICY Description Estimated Annual


REDUCTIONS policy savings as
at December 2009
HSE This regulation simplifies the process for checking contractors’ £166m
Construction (Design competence whilst consolidating four separate pieces of legislation.
and Management)
Regulations 2007
Food SA A pack and a simple record-keeping diary aimed at helping small food £128m
Safer Food, caterers and retailers comply with food safety management procedures.
Better Business Packs have been developed for various cuisine types, with an interactive
DVD in 16 different languages. Training and coaching advice is also provided.
DH Multi-award winning BROMI allows industries to gain from streamlined £104m
Better Regulation of processes and faster time to market.
Medicines Initiative
(BROMI)
DfT DfT published a revised “Guide to Maintaining Roadworthiness” in £100m
Better targeted December 2006. The guidance will reduce the number of times some
safety inspection modern vehicles need to be given vehicle inspections (other than annual
requirements for goods ‘MoT’ tests), saving time and costs for some operators.
vehicle and passenger
transport (HGV and
PSV) operators
DfT Concluding agreements to remove restrictions on international air travel £100m
Removing bilateral to the UK which will have the effect of increasing air travel to and from
restrictions on the UK. This will increase the revenue of relevant companies.
international air travel
to and from the UK

Section 3  |  Chapter 3: Reducing policy burdens and irritants 53


POLICY Description Estimated Annual
REDUCTIONS policy savings as
at December 2009
DfT Mutual recognition of Certificates for Radioactive Material Transport £75m
Reduced burden on Packages between UK and France. A single application will result in
radioactive material certification in both UK and France.
transport industry
BIS This has lead to more predictable and comprehensible laws for £68m
Other Companies Act private businesses.
measures including
codification of directors’
general duties
HSE Allows employers to choose from two training courses in the future £52m
First Aid Guidance for their first aiders.
Food SA Slaughterhouses and cutting plants no longer required to dispose £40m
Removal of Restrictions of UK beef bones as animal by-product. They may now sell bones
on use of Beef Bones for use in food.
Food SA OTM (Over-thirty month) cattle can enter the food chain as long as £39m
Replacement of the they test negative for BSE.
Over Thirty Month
(OTM) rule

Section 3  |  Chapter 3: Reducing policy burdens and irritants 54


Reducing Non-Monetary Irritants
Some regulations, whilst not having a high cost associated with Defra
compliance, attract considerable negative feedback from those
affected. These regulations, which are often known as ‘business
June and December
irritants’ tend to serve a purpose which is not obvious to those who Agricultural Surveys
implement them, duplicate other activity or require an action or These online surveys allow farmers to quickly and easily complete
information which is self-evident. The October 2009 Better Regulation, details of their current farming activity. The benefit of this is that
Better Benefits Report12 found that “Even though the cost of regulation accurate returns provided through online surveys minimise other
is important, especially to small business owners, bureaucratic red information requests that Defra makes of farmers. There is
tape, the difficulty of finding information, lengthy training in regulatory currently an audience of approximately 40,000 farmers for the
requirements, having to constantly revisit changing regulatory policy, June Survey and 20,000 for the December Survey.
and haphazard enforcement of the rules are all more immediate
concerns to the individual”. “By the way I recently filled out our June Census through the site
and it was a doddle!!! Congratulations to your team for developing
Examples of how these are being tackled include: something useful and user friendly.”
• CLG has amended its procedures for correcting minor errors Fay Grace, Life Hill Farm
at appeal on planning applications. As long as the error is
inconsequential to the decision, it may be corrected easily and
simply, greatly improving the efficiency of the appeal procedure.
• The Food Standards Agency has produced a document to consolidate
all of the guidance on allergen labelling legislation. This has made it
easier to understand and conform to the relevant regulation.

12. http://www.berr.gov.uk/files/file53252.pdf Section 3  |  Chapter 3: Reducing policy burdens and irritants 55


Home Office
Criminal Record Bureau –
Electronic Services
In April 2009, CRB launched its first electronic application channel.
This is part of a wider programme to make all of its services
available electronically and will eventually see more than one
million applications submitted using this route. The e-Bulk service
is aimed at Registered Bodies which each submit more than 3,000
applications each per year.
Ann Matthews (Girl Guiding UK) “As an organisation that relies solely
on volunteers to deliver guiding to approximately 600,000 girls and
young women, a safe and speedy recruitment process is essential.
E-Bulk is turning around applications in four days, and the majority
in no more than six. Additionally, it has consolidated our existing
processes by ensuring our error rate is kept to a minimum.”

Section 3  |  Chapter 3: Reducing policy burdens and irritants 56


SECTION 4

Annexes

Annex A  autious Predictions –


C
risks to delivery by May 2010
Annex B  xternal Validation Panel
E
May 2005 – May 2009
Annex C The Measurement Process:
The International Standard
Cost Model Methodology
Annex D Baseline Adjustments

57
Annex A

Cautious Predictions – risks to delivery by May 2010

The Administrative Burden • In some cases the • The cumulative result of Our overall view is that the
Reduction Programme report implementation of these two factors is that Programme is still on track to
this year includes best-case and simplification measures Departments are being more deliver, albeit with tight margins.
cautious delivery forecasts to is likely to be delayed cautious about the delivery The Government’s cautious
May 2010. due to linkages with the claims they are making estimates result in a marginally
legislative programme (if a against their targets and their lower delivery overall. The net
• For some simplification
Parliamentary Bill is delayed predictions for future delivery. cautious estimate for delivery by
measures, whilst the
then the framework changes May 2010 is £99.8 million lower
Department has put the This has led us to carry out a
cannot be made to support than the net best-case estimate,
legislative and regulatory more detailed analysis of the
a simplification). This is, in or delivery of 24.28% overall as
framework in place, offering programme overall, and the risks
part, due to the pressure on compared to the 25.04% best-
the opportunity for savings to delivery, than in previous
Parliamentary time over the case estimate.
in administrative processes, reporting years. The results of
last session with unexpected
businesses have not taken this analysis are shown below
and more urgent legislative
advantage of the opportunities and depict our best-case and
pressures, taking precedence
presented. This is primarily cautious estimates of delivery.
in some cases.
because, given the recent
economic climate, business
leaders’ attention has
been elsewhere.

Section 4  |  Annex A: Cautious Predictions – risks to delivery by May 2010 58


FIGURE 5: Admin Burden Reduction Programme – Net trajectory May 2005 - May 2010.
Cautious and best case forecast by May 2010.

£4,000

£3,500
£3.35bn
£3.290bn

£3.191bn
£3,000
£2.927bn
£2.89bn
£2.635bn

£2,500

£2.378bn

£2,000
£1.95bn
£1.66bn
£1,500

£1,000

£0.67bn
£500
£0.35bn
Delivered Forecast
£0
May 2006 May 2007 May 2008 Dec 2008 May 2009 Dec 2009 May 2010

External Validation Panel established


SP09 - best-case forecast to May 2010
SP08 - net reductions
Target by May 2010 based on Dec 2009 baseline
SP09 - cautious forecast to May 2010

Section 4  |  Annex A: Cautious Predictions – risks to delivery by May 2010 59


The table below explains how the cautious estimate is arrived at:

FIGURE 13: Administrative Burden Reduction Programme – Net trajectory May 2005 – May 2010.
Cautious and best case forecast by May 2010 (figure continues on the next two pages)

DEPARTMENT MEASURE DELIVERY BEST-CASE CAUTIOUS EXPLANATION


DECEMBER VALUE MAY VALUE MAY
2009 2010 2010
BIS Modernisation of insolvency £0m £10m £0m Measure should be coming into
rules 1996 force in April 2010 might slip
HSE Gas Safety (Installation and £0m £27m £0m Measure is implemented late
Use) Regulations in the programme and may not
Reviewing the requirement for realise full savings
a landlord to carry out a gas
safety check
Removal of Dock Forms £0m £3.4m £0m Implementation is intended
Removal of a form to certify late in the programme and
a dock transport vessel may slip outside the timeframe
Business On-line project £0.67m £10m £0.67m Parts of programme still
Transferring HSE forms to to be implemented and
Savings

electronic and interactive format may slip outside of


programme timeframe
Cabinet Office Charities (Qualified £0m £2.4m £0m Measure has already faced
Surveyors` Reports) slippage and may not
Regulations 1992 be implemented inside
Benefits would be felt by programme timeframe
charities who wish to sell or
lease land held by or in trust
for them
Food SA Feed Hygiene £0m £35m £21m Measure is implemented late
Simpler guidance to clarify in the programme and may not
what and how feed records realise full savings
should be kept for farmers
on feed record-keeping
requirements

Section 4  |  Annex A: Cautious Predictions – risks to delivery by May 2010 60


DEPARTMENT MEASURE DELIVERY BEST-CASE CAUTIOUS EXPLANATION
DECEMBER VALUE MAY VALUE MAY
2009 2010 2010
Food SA The Meat Products (England) £0m £9m £6.3m Measure is implemented late
(Amendment) Regulations 2010 in the programme and may not
A reduction in the amount of realise full savings
time required to decide what
labelling is required for some
meat products

ONS Further measures to reduce £0m £2.9m £1.45m Measure is implemented late
the administrative burden of in the programme and may not
surveys on business realise full savings
DfT Introductions of digital £14m £24.76m £17m Whilst measure is in place,
tachographs take up may be slower than
The move from analogue to first expected
digital tachographs reduces
the cost of making records
of drivers’ hours, greatly
Savings

facilitating the collection,


analysis and storage of data
for HGV operators
HMT Better Regulation Measures £77m £115m £94.3m The measure is currently
for the Asset Management in place and delivering,
Sector (Paperless but take up is slower than
Settlement) expected due to the current
Lifts the previous requirement economic climate
for paper settlement and
transfer of title for find
managers, stockbrokers,
financial advisers and other
intermediaries by allowing
electronic settlement
Home Office Animal Scientific Procedures £1.63m £1.81m £1.77m Take up may be lower then
Involves an elimination of first expected
the requirement to submit
documents to regulators

Section 4  |  Annex A: Cautious Predictions – risks to delivery by May 2010 61


DEPARTMENT MEASURE DELIVERY BEST-CASE CAUTIOUS EXPLANATION
DECEMBER VALUE MAY VALUE MAY
2009 2010 2010
HO Firearms Act 1968: Register £0.16m £0.18m £0m Take up may be lower then
of firearms transaction & first expected
supplying data of purchaser
Savings

Reviews of the forms used to


reduce duplication, cut down
on the stages and make them
simpler to complete
BIS Batteries and -£1m -£1.4m -£2.1m Total burden will depend on the
Accumulators Directive number of businesses affected
An increased burden as by change in regulation
producers are required to
register and provide reports
on batteries and accumulators
Burdens

and spent batteries and


accumulators
CLG Permeable Surfacing £0m -£0.3m -£0.5m Total burden will depend on the
Impermeable surfacing number of businesses affected
of domestic front gardens by change in regulation
would be subject to planning
permission to reduce surface
water run off
TOTAL £239.75m £139.89m
DIFFERENCE £99.86m

Section 4  |  Annex A: Cautious Predictions – risks to delivery by May 2010 62


Annex B

External Validation Panel May 2005 – May 2009

The External Validation Panel The remit of the External Summary of


was established in 2008 in Validation Panel (EVP) is to test
2008 validation
response to recommendations the assumptions underpinning
The Panel met for the first time in
from external stakeholders, the reported administrative
2008 and chose to scrutinise the
including the National Audit burden reductions, to ensure the
top simplification measures
Office. Government agreed changes have been effectively
Government Departments had
that, as more simplification communicated to business
implemented between May 2005
measures started to deliver and that business is actually
and May 2008, a sample covering
opportunities for businesses benefiting from the savings
over 90% of the reported gross
to make savings, external claimed by Departments.
annual savings. Departments
scrutiny was essential to
were made responsible for the
assess whether the reported
scrutiny of smaller measures
savings were being felt by
delivering more than £10 million
business on the ground.
in annual savings.
The Panel provides a robust
challenge and quality assurance
role and is made up of
representatives from the
Confederation of British Industry,
the Institute of Directors, the British
Chambers of Commerce, the
Federation of Small Businesses
and the Trades Union Congress.

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 63


FIGURE 14: EVP08 scrutiny of measures FIGURE 16: Total validated by EVP in 2008

NUMBER OF TOTAL GROSS Total gross savings to Total gross % of May 2008
MEASURES (£M) May 08 reported in SP08 savings to delivery
May 08 reported as validated by EVP
May 08 delivery selected for 24 £1,992.0m
validated
review by EVP08
in SP08
May 08 delivery not selected 182 £284.6m
£2,148.0m £1,863.4m 86.75%
for review by EVP08

EVP08 asked Government to review the remaining 182 simplification


measures to ensure they were credible. BRE and Departments
FIGURE 15: EVP08’s outcome
undertook this exercise for measures realising over £10m gross
TOTAL GROSS savings as at May 2008 which represented over 70% of the remaining
(£M) measures delivering at that time and not subject to external scrutiny.
Delivery validated by the EVP08 £1,863.4m

Delivery withdrawn from the £96.1m* number of TOTAL GROSS


EVP08 process measures (£M)

Delivery deferred by the Panel £32.5m** Measures realising over 8 £121.3m13


£10m gross savings as at May
2008- validated by EVP
* see Figure 19 for breakdown
** see Figure 20 for breakdown

13. This figure does not include two measures delivered by MoJ regarding Legal Aid Reforms worth
a total of £27.65m which were incorrectly included in the BRE/Department validation total in the
2008 Summary Report. These measures were subsequently put forward to the EVP09 to ensure
savings were effectively implemented and felt by businesses. Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 64
FIGURE 17: Result of 2008 validation

Total gross savings to Gross May 08 % of May 2008


May 08 reported in SP08 delivery validated delivery
by either EVP or validated
BRE/Departments
across the
programme
£2,148.0m £1,984.7m 92.4%

Total gross savings to Gross DEC 08 % OF DEC 2008


Dec 08 reported in SP08 delivery validated delivery
by either EVP or validated
BRE/Departments
across the
programme
£2,630.0m £1,984.7m 75.5%

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 65


FIGURE 18: Measures fully validated by EVP08 (figure continues on the next page)

EVP REF DEPT SIMPLIFICATION NAME VALUE CLAIMED BY IMPLEMENTATION DATE VALUE VALIDATED FINAL EVP08 STATUS
DEPT AS AT MAY 08 (DEPT) BY EVP (MAY 08)
EVP08 1 BERR Electronic communication £76m May 2007 - May 2008 £76m Fully validated
with shareholders
EVP08 2 BERR Capital Maintenance £68m May 2007 - May 2008 £68m Fully validated

EVP08 3 BERR Remove requirement £45m May 2007 - May 2008 £45m Fully validated
for private companies
to hold AGM
EVP08 5 CLG Housing Act 1985 Repeal £207m May-05 £207m Fully validated
of Part XI
EVP08 6 HSE Sensible Risk £163.3m May-08 £163.3m Fully validated
Management - Example
Risk Assessments
EVP08 7 CLG Competent Persons £132m Dec-05 £132m Fully validated
Schemes
EVP08 8 DIUS Weights and Measures: £129m May-06 £129m Fully validated
Weights and Measures
(Packaged Goods)
regulations 1986
EVP08 9 DH BROMI + EU + £104m Dec-06 £104m Fully validated
Pharmaceutical
EVP08 10 DCMS Licensing Act 2003 £181m May-06 £181m Fully validated
EVP08 11 DWP Replace minimum funding £64m Dec-05 £64m Fully validated
requirement legislation
EVP08 12 DCMS Gambling Act 2006 £56.6m N/A £56.6m Fully validated
EVP08 13 CLG Fire Safety RRO £53m Dec-06 £53m Fully validated
EVP08 16 BERR Various Employment £418m Dec-07 £418m Fully validated
Guidance measures

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 66


EVP REF DEPT SIMPLIFICATION NAME VALUE CLAIMED BY IMPLEMENTATION DATE VALUE VALIDATED FINAL EVP08 STATUS
DEPT AS AT MAY 08 (DEPT) BY EVP (MAY 08)
EVP08 17 DfT Revision of the passenger £30.5m May-07 £30.5m Fully validated
rail franchise map,
reducing the number
of separate franchises
EVP08 18 Food SA Safer Food, £28.3m May-08 £28.3m Fully validated
Better Business

EVP08 19 HSE Control of Asbestos £27.7m Dec-06 £27.7m Fully validated


Regulations
EVP08 20 DWP Improve pension £24m May-06 £24m Fully validated
regulations to make
payments by employers
less prescriptive
EVP08 22 HSE Workplace (Health, Safety £17m Dec-07 £17m Fully validated
and Welfare) Regulations
- guidance on labelling
drinking water
EVP08 23 HSE Reporting of Injuries, £16.5m Dec-07 £16.5m Fully validated
Diseases and Dangerous
Occurrences Regulations
(RIDDOR)
EVP08 24 DWP Simplify member- £22.5m May-06 £22.5m Fully validated
nominated trustee/
director requirements
SUBTOTAL £1863.4m £1863.4m

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 67


FIGURE 19: Measures withdrawn from the EVP08 process

EVP REF DEPT SIMPLIFICATION NAME VALUE CLAIMED BY IMPLEMENTATION DATE Value withdrawn FINAL EVP08 STATUS
DEPT AS AT MAY 08 (DEPT) (May 08)
EVP08 4 BERR Other Companies Act £28m May 2007 - May 2008 £28m Withdrawn -
measures including not yet delivered
codification of directors’
general duties
EVP08 14 Defra TSE Regulations 2006 £44.4m May-06 £44.4m Withdrawn -
technical adjustments

EVP08 21 Defra Pollution Prevention £23.7m May-08 £23.7m Withdrawn -


and Control technical adjustments
SUBTOTAL £96.1m £96.1m

FIGURE 20: Measures deferred by EVP08

EVP REF DEPT SIMPLIFICATION NAME VALUE CLAIMED BY IMPLEMENTATION DATE VALUE REJECTED FINAL EVP08 STATUS
DEPT AS AT MAY 08 (DEPT)
EVP08 15 HSE Manual Handling £32.5m May-08 £32.5m Deferred- savings
Operations Regulations not yet delivered
SUBTOTAL £32.5m £32.5m

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 68


FIGURE 21: EVP 2008 - BRE/Department’s Review

DEPTS SIMPLFICATION NAME GROSS SAVINGS COMMENTS


AS AT MAY 08
Food SA Production of UK Guidance Notes for £15.6m
Regulation (EC) 178/2002 (Traceability)
Food SA Revocation: Dairy Products £14m
Food SA Revocation: Fresh meat £11m
CLG Building Regulations: User Centred Guidance £12m
DH Review of National Minimum standards for £28.3m
Adult Social Care- stage 1- reduction of
inspection frequency and statutory measures
DH Better Regulation of Medicines Initiatives £11m
(BROMI) Phase 2 b)
DWP Remove regulation requirering landlords £11m
to provide information for backdating
housing benefit claims
HSE Sensible Risk Management - £18.4m
DSE and Manual Handling
MoJ Legal Aid- Implementation £0m £12.05m initially reported as validated
of the Unified Contract in Summary Report 2008 but put
forward to EVP09 on BRE’s decision
MoJ Legal Aid Reforms-Civil Unified Contract £0m £15.6m initially reported as validated
(Removal of Not for Profit Contract) in Summary Report 2008 but put
forward to EVP09 on BRE’s decision
TOTAL £121.3m

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 69


Summary of 2009 validation
In 2009, the Panel took a slightly different approach to increase the
breadth of their scrutiny across the programme by making sure that
each Department involved in the Administrative Burden Reduction
Programme had been reviewed by the Panel, at least once, either
in 2008 or in 2009. As a result, EVP09 reviewed and challenged:

FIGURE 22: EVP - BRE/Department’s Review

Gross May 2009 ABRP Gross Dec 2009 ABRP


May 2009 Dec 2009
Savings delivery (£m) Savings delivery (£ms)
£3,147m £3,921m number of total number of
measures gross (£m) depts
2008 Validated
Validated £2,439m Any existing or new 26 £760.6m 10
£1,985m simplification measure with
annual savings of over £10
million which had not yet
been validated by the Panel.
The largest simplification 5 £25.2m 6
measure for each Department
or Agency with a small
administrative burden
baseline (less than £10m).
Not Not
EVP09 Validated Validated Total reviewed by EVP09 31 £785.8m14 16
Validated £707m 1,480m
£454m

77.5% validated 62.2% validated

14. This total value includes measures initially selected by the panel which were withdrawn during the
scrutiny process (DCSF - Independent Schools (£18.1m) and DEFRA - The Animal Welfare Code of
recommendations (£10m)) Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 70
FIGURE 23: EVP09 Overview FIGURE 24: Result of 2009 validation

Total gross % of new delivery Total gross savings to Gross May 09 % of May 2009
(£m) put forward to May 09 reported in SP09 delivery validated delivery validated
EVP09 by either EVP or
BRE/Departments
Delivery validated by the EVP09 £453.94m 57.8%
across the
Delivery to be reported as £150.1m 19.1% programme
delivered but not validated
£3,147m £2,438.64m 77.5%
Delivery deferred by the Panel £181.8m 23.1%

Total gross savings to Gross DEC 09 % of DEC 2009


Total gross Dec 09 reported in SP09 delivery validated delivery validated
(£m) by either EVP or
BRE/Departments
Gross May 09 delivery £3,146.5m across the
to be reported in SP09 programme
£3,921m £2,438.64m 62.2%

Total gross % across the


(£m) programme
Total May 05 – May 09 £2,438.62m 77.5%
delivery either validated
by EVP or BRE/Departments

Total gross
(£m)
Gross Dec 09 delivery £3,921m
to be reported in SP09

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 71


FIGURE 25: Measures fully validated by EVP09 (figure continues on the next two pages)

EVP REF DEPT SIMPLIFICATION NAME Value claimed by IMPLEMENTATION DATE Value validated FINAL EVP09 STATUS
Dept (May 09) (DEPT) by EVP (May 09)
EVP09 1 BIS Dispute resolution £115m Jan-May 09 £115m Fully validated
(ex BERR) (Employment Law)
EVP09 3b DWP Employers’ Liability £21m June-Dec 08 £21m Fully validated
Compulsory Insurance
certificates (Review) -
Part 1&2
EVP09 5a BIS Simpler law for smaller £21.60m June-Dec 07 £21.60m Fully validated
(ex BERR) firms (Company Law and
Accounting)
EVP09 5b BIS (ex Simpler law for smaller £16.80m June-Dec 07 £16.80m Fully validated
BERR) firms (Company Law and
Accounting)
EVP09 7 CLG Delivering electronic £35m Jan-May 08 £35m Fully validated
capability a) Standard
Planning Application Form
EVP09 9 HSE Manual Handling £32.50m Jan-May 09 £32.50m Fully validated
Operations Regulations
EVP09 11 CLG Delivering electronic £25m Jan-May 08 £25m Fully validated
capability b) validity criteria
EVP09 13 CLG Fire Safety RRO £21m June-Dec 06 £21m Fully validated
EVP09 14 HSE Forms project (Removal £21m Jan-May 09 £21m Fully validated
of 8 forms required by
the Factories Act, Offices,
Shops and Railway
Premises Act (OSR Act))
EVP09 15 CLG E-Enablement of Building £20m June-Dec 08 £20m Fully validated
Control Service
EVP09 17 MoJ Legal Aid Reforms- £15.6m Jan-May 07 £15.6m Fully validated
Implementation of the Civil
Unified Contract (Removal
of 3 data requirements from
Not for Profit Contracts)

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 72


EVP REF DEPT SIMPLIFICATION NAME Value claimed by IMPLEMENTATION DATE Value validated FINAL EVP09 STATUS
Dept (May 09) (DEPT) by EVP (May 09)
EVP09 18 DfT Drivers’ Hours (3) £15.4m Jan-May 08 £15.4m Fully validated
EVP09 19 DfT Introduction of digital £14.4m Jan-May 06 £14.4m Fully validated
tachographs
EVP09 20 CLG Delivering electronic £14m Jan-May 09 £14m Fully validated
capability c) E-planning
EVP09 21 MoJ Legal Aid- Implementation £9.4m Jan-May 08 £9.4m Fully validated
of the Unified Contract (it is acknowledged
that MoJ presented
a cautious estimate
of delivery to the Panel
– MoJ now believe
this measure to be
delivering £12.05m)
EVP09 23 HSE Health & Safety £10.7m Jan-May 09 £10.7m Fully validated
Information for Employees
Regulations- the HSE law
poster/approved leaflet
EVP09 24 Defra NetRegs £10m June-Dec 06 £10m Fully validated
EVP09 26 ONS Reduction to sample sizes £3.3m Jan-May 07 £3.3m Fully validated
for a number of surveys
EVP09 28 Forestry Plant Health £0.34m Jan-May 06 £0.34m Fully validated
Commission
EVP09 29 DCSF Early years census £9.8m Jan-May 09 £9.8m Fully validated
SUBTOTAL £431.84m £431.84m

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 73


FIGURE 26: Measures partially validated by EVP09

EVP REF DEPT SIMPLIFICATION NAME Value claimed by IMPLEMENTATION DATE Value validated FINAL EVP09 STATUS
Dept (May 09) (DEPT) by EVP (May 09)
EVP09 10 Home Points Based System £25m Jan-May 08 £12.5m Partially validated -
Office (PBS) for Work Permits delivery which can be
reported as delivered
but unvalidated in SP09
EVP09 22 DfT Introduction of electronic £10.7m Jan-May 06 £9.6m Partially validated -
vehicle licensing (EVL) delivery which can be
reported as delivered
but unvalidated in SP09
SUBTOTAL £35.7m £22.1m

FIGURE 27: Measures for which savings can be reported as delivered but unvalidated in SP09 (figure continues on the next page)

EVP REF DEPT SIMPLIFICATION NAME Value claimed by IMPLEMENTATION DATE Savings which FINAL EVP09 STATUS
Dept (May 09) (DEPT) can be claimed
in SP 09 but as
unvalidated
EVP09 3a DWP Employers’ Liability £37m June-Dec 08 £37m To be reported as
Compulsory Insurance delivered but unvalidated
certificates (Review) -
Part 1&2
EVP09 4 CLG Householder Development £45m Jan-May 09 £6.3m To be reported
Consents Review (HDCR) as delivered but
unvalidated15
EVP09 6 HSE Good practice on worker £36.6m June-Dec 08 £36.6m To be reported as
involvement delivered but unvalidated
EVP09 8 HSE Lifting Operations £33m June-Dec 08 £33m To be reported as
& Lifting Equipment delivered but unvalidated
Regulations and Provision
& Use of Work equipment
Regulations

15. EVP09 concluded that it was too early to validate savings for this measure. BRE subsequently agreed
CLG’s reporting of £15 million minimum savings at May 2009. Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 74
EVP REF DEPT SIMPLIFICATION NAME Value claimed by IMPLEMENTATION DATE Savings which FINAL EVP09 STATUS
Dept (May 09) (DEPT) can be claimed
in SP 09 but as
unvalidated
EVP09 12 Defra Common Agricultural £21.20m June-Dec 05 £21.20m To be reported as
Policy Single Payment delivered but unvalidated
and Support Schemes
Regulations 2005
EVP09 27 Charity Trustees Annual Report £2.4m Jan-May 07 £2.4m To be reported as
Commission (TAR) (i) Changes to delivered but unvalidated
Registration threshold in
2006 Act, (ii) Increase in
Audit threshold in 2006 Act
SUBTOTAL £175.2m £136.5m

FIGURE 28: Measures withdrawn from EVP09 process

EVP REF DEPT SIMPLIFICATION NAME Value claimed by IMPLEMENTATION DATE Value withdrawn FINAL EVP09 STATUS
Dept (May 09) (DEPT)
EVP09 16 DCSF Independent Schools: £18.1m Delayed £18.1m Withdrawn
10 information obligations
(package)
EVP09 25 Defra Animal Welfare Code £10m Delayed £10m Withdrawn
of Recommendations
SUBTOTAL £28.1m £28.1m

Section 4  |  Annex B: External Validation Panel May 2005 – May 2009 75


Annex C

The Measurement Process:


The International Standard Cost Model Methodology

The measurement of There were two key stages Stage 1 methodology does not set out
administrative burdens was a to reaching the original to achieve a statistically robust
Measurement
substantial and complex administrative burdens baseline: estimate of administrative costs,
undertaking involving Administrative costs are the as this requires a huge sample
• the initial measurement of annual reoccurring costs of
Departments and regulators size, incurring disproportionate
administrative costs; and administrative activities that
across government, co-ordinated expense.
by the Better Regulation businesses and the third sector
• calculating from the
are required to perform in order Instead, it provides a systematic
Executive. The original initial measurement the
to comply with the obligations that approach to measurement that
measurement was carried out administrative burden by
are imposed through central provides indicative data on the
between May 2005 and May 2006 applying a business as
Government regulation. These administrative costs of regulation.
and the results form the usual adjustment.
include, for example, form filling, International experience has
administrative burdens baseline
keeping records or responding to shown this approach to be
as of May 2005. It was against this
information requests. valuable in understanding the
baseline that each participating
regulatory landscape and focus
organisation agreed to a net The measurement of the in simplification activity. The
administrative burden reduction administrative costs of regulation Standard Cost Model methodology
target of 25%, to be achieved by impacting business and the third breaks down regulations into a
2010 (except for Cabinet Office, sector was undertaken using the range of manageable
who chose a 35% target). Standard Cost Model components. This enables the
methodology, as recommended systematic measurement of the
by the Better Regulation Task cost of regulation across
Force. The Standard Cost Model

Section 4  |  Annex C: The Measurement Process 76


Government through extensive The Standard Cost Model Multiplying the Time and Wage
interviews and focus groups with calculates the administrative Rate provides the Unit Cost of
individual businesses, charities costs arising from a regulation the obligation. Multiplying the
and voluntary sector by measuring four key factors: Population and Frequency
organisations. provides the Quantity. The Unit
•h
 ow long it takes to comply
Cost and the Quantity are then
These components are called with the obligation (Time);
multiplied to establish the
obligations. An obligation is the
• the wage rate of the person who Administrative Cost. This
specific requirement that must
undertakes this (Wage Rate); has been illustrated below:
be undertaken in order to comply
with a regulation. • how many organisations carry
FIGURE 29: SCM formula
out the obligation (Population);
All central Government
and
regulations were mapped.
Unit cost* x Quantity
The responsible Government • how frequently (each year)
Department and the origin of the the obligation is carried out (Time x Wage Rate) x (Population x Frequency)
regulation were then identified, (Frequency)
the required obligations defined, * including external costs
and the costs measured.

Section 4  |  Annex C: The Measurement Process 77


The Unit Costs also includes any Departments have continued The administrative burden The process to estimate suitable
overheads or external goods or to measure the administrative is defined as the cost of business as usual adjustments
services required in order to burden of regulations introduced administrative activities over was carried out with the full
comply with the obligation within since May 2005 using the same and above what a business would support and assistance of the
the regulation. approaches outlined above in choose to do in the absence of the business community and the third
order to report progress on their regulation. The business as usual sector. An independent panel
The cost, quantity, population and
net reduction targets. This year’s approach is about focusing agreed the business as usual
frequency elements of the
plans reflect the administrative Government’s reduction effort process and methodology and
calculation were estimated using
burden of any regulations on the burdens that are of real determined what activity business
input from businesses or business
introduced between June 2005 concern to business. There is would do in the absence of
associations.
and December 2009. little benefit to business from regulation. Data from the
This was done through extensive simplifying activities that business measurement exercise was used
face-to-face interviews, telephone Stage 2 has indicated they would choose as a basis to calculate indicative
interviews, expert panels, virtual Adjusting for to undertake even if the regulation estimates for this activity for all
panels and assessment with business as usual did not exist. information obligations. The Panel
consistent validation through then considered and challenged
Once the measurement exercise
Monitoring Groups consisting of data for the information
had established the administrative
key stakeholders to advise and obligations that made up 70%
costs of regulation, the
challenge the results. of the total administrative cost.
Government applied a pragmatic
Government Departments
and credible process to estimate
commissioned Pricewaterhouse
the percentage of the total
Coopers to carry out this
administrative costs that consist
measurement, which involved
of activities that business would
over 8,500 interviews and over 200
do anyway. This is termed the
expert panels. All of the regulation
business as usual cost.
that was in force as of May 2005
Subtracting the business as usual
represented the original
cost from the total administrative
administrative burden baseline.
cost estimate gives an estimate of
the administrative burden.

Section 4  |  Annex C: The Measurement Process 78


Annex D

Baseline Adjustments

The measurement of However, there have been a Criteria for technical


administrative burdens was number of baseline changes adjustments to the baseline
carried out from May 2005 and since May 2005:
Baseline adjustments
completed in May 2006 and the
• to reflect any Machinery should be approved if there
results form the administrative
of Government changes is overwhelming evidence
burden baseline as of May 2005.
which could lead to individual that a significant error has
It was against this baseline that
regulations transferring been made to the following
each participating Department,
between Departments; and categories:
regulator or agency involved in
this programme agreed to a net • to correct any errors made • regulation(s) that should
administrative burden reduction by the initial measurement have been measured, but
target of 25% to be achieved by exercise. were not; and
May 2010 (except Cabinet Office
who agreed a target of 35%). • population information,
external goods or services,
internal time or wage rate,
or business as usual factors
have been significantly over
or under estimated.

Section 4  |  Annex D: Baseline Adjustments 79


2009 Baseline adjustments
The Departments for which baseline adjustments have been made
in 2009 are outlined below.

FIGURE 30: Technical and Machinery of Government changes

Department baseline at Machinery of Technical Baseline at


december 2008 Government Adjustments December 2009
changes
BERR £4,068m -£4,068m (1&3) £0m
DIUS £543m -£543m (1) £0m
BIS £0m £4,532m (1) -£44.3m (2) £4,489m
DECC 78.3m (3) -£2.7m (4) £76.97m

MoJ £369.4m -£13.47m (5) £356m

1. Machinery of Government 2. BIS made a net baseline 3. Machinery of Government 5. MoJ made a baseline
change resulted in £78.3m adjustment by removing change resulted in transferring adjustment removing a total of
transferring from BERR to a total of £44.3 million from DEFRA (0.2m) and BERR £13.4 million relating to probate
DECC. This left BERR with including the Companies Act (78.3m) to DECC. and letters of administration,
a baseline of £3,990m. 2006; Insolvency (Amendment) data protection and accounts
4. DECC made a baseline
Subsequent Machinery of Rules 2009; The Legislative rules for solicitors and
adjustment of £2.7 million to
Government changes resulted Reform Order (Insolvency) registered foreign lawyers.
transfer back to BIS (ex-BERR)
in transferring £3,990m from (Miscellaneous Provisions)
an information obligation
BERR and £543m from DIUS Order 2009; and Export
relating to Export Control.
to the newly formed BIS. Control; and DRID 1955
Employment Agencies
Estate Agents (Accounts)
Regulations 1981.

Section 4  |  Annex D: Baseline Adjustments 80


FIGURE 31: 2009 Departmental baseline and target
Department baseline (£m) Target (£m) Target (%) % total baseline

BIS £4,489.0 £1,122.3 25% 34.16%


CLG £2,486.5 £621.6 25% 18.92%
HSE £2,022.5 £505.6 25% 15.39%
DH £1,201.9 £300.5 25% 9.15%

DfT £585.0 £146.3 25% 4.45%


DWP £471.0 £117.8 25% 3.58%
Defra £458.2 £114.6 25% 3.49%
MoJ £356.0 £89.0 25% 2.71%
DCMS £343.2 £85.8 25% 2.61%
DCSF £209.7 £52.4 25% 1.60%
HMT £158.9 £39.7 25% 1.21%
Food SA £90.5 £22.6 25% 0.69%
Home Office £83.0 £20.8 25% 0.64%
ONS £48.7 £12.2 25% 0.37%
Charity £36.6 £9.2 25% 0.28%
Commission
Cabinet Office £15.4 £5.4 35% 0.12%
GEO £5.7 £1.4 25% 0.04%
Forestry £1.46 £0.4 25% 0.01%
Commission
DECC £76.97 £19.216 N/A N/A
Total £13,140.3 £3,286.6

16. 25% of baseline indicated for completeness: no simplification target was set for DECC due to its late
inclusion in the Programme (October 2008). Section 4  |  Annex D: Baseline Adjustments 81
www.betterregulation.gov.uk
URN 09/P69

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