Press Release - Reducing the cost of complying with
regulations: The delivery of the Administrative Burdens Reduction
Programme, 2007
25 July 2007
The NAO has found that departments are committed to identifying
possible reductions and are taking a pragmatic approach to
identifying measures to reduce burdens. The departments evaluated
in the NAO study are seeking to reduce quantified administrative
burdens, but also deliver wider improvements in the regulatory
environment by tackling aspects of regulation that businesses find
particularly irritating and burdensome.
The Administrative Burdens Reduction Programme, which is part of
the Government’s regulatory reform efforts, was developed to reduce
the cost to business of providing information to demonstrate their
compliance with regulations. The Programme has provided a new focus
and impetus to Government efforts to reduce the burden of
regulation, but delivery of the intended objectives is a
challenging and complex task.
The Government has measured the administrative burdens on
business, which are estimated to cost nearly £20 billion.
Departments will seek to reduce these burdens by at least 25 per
cent by 2010 and have published plans outlining over 500
simplification measures to progress towards their targets. The
Government’s choice of targets followed the precedent set by Danish
and Dutch Governments.
A National Audit Office survey of 2,000 businesses has revealed
that, while the majority of businesses understand the purpose of
regulation, 60 per cent believe the level of regulation in the UK
is an obstacle to the success of their business, and 85 per cent
are not confident that Government will succeed in reducing
regulatory burdens. This survey will form the baseline against
which changes in business perceptions of the burden of regulation
will be measured.
The Government believes the Programme will allow businesses to
use resources spent on complying with regulations on more
productive activities, thereby promoting innovation and,
ultimately, contributing to faster productivity growth in the UK.
The effect of regulation on productivity levels has, however, not
been conclusively established. The NAO is calling on the Better
Regulation Executive to prioritise work to explore this link, and
to consider how the overall impact on UK businesses’ productivity
will be assessed.
Sir John Bourn, head of the National Audit Office, said
today:
“There is no certainty that the Administrative Burdens Reduction
Programme will deliver its intended objectives. For regulatory
reform to succeed, departments must understand business and measure
and communicate results. So far, they have made a pragmatic start.
Businesses, however, are not convinced that the programme will make
a real difference to them. I will revisit this to check on
progress.”
Notes for Editors
- This year’s examination of the Administrative Burdens Reduction
programme focused on the Better Regulation Executive and the four
departments that are responsible for a majority of business
regulation: communities and Local Government, the Department for
Business, Enterprise and Regulatory Reform, HM Revenue and Customs
and the Health and Safety Executive.
- The NAO conducted a survey of 2,000 businesses to track
businesses’ perceptions of the burdens of regulation and the impact
of departmental initiatives to reduce administrative burdens. The
survey will be repeated in future years to test the extent to which
the Programme is delivering real improvements for business. This
year, our survey focused on the five areas of law that impose the
largest administrative burdens: Planning law; Employment Law;
Company Law; Tax Law; and Health and Safety law.
- This report is the second of two major NAO reports on the
progress of regulatory reform within government. Regulatory reform
covers reducing administrative burdens, Impact Assessments and
improving the performance of regulators. On 11 July we published
our ‘Evaluation of Regulatory Impact Assessments, 2006-07’ report.
Taken together, our reports provide an overview of the two major
parts of regulatory reform in Government.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 850 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 37/07
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