"Cutting the cost of regulation in
a sustainable way without losing its benefits requires a structured
and planned approach over a period of
years.
The Better Regulation Executive
and departments have made a start on developing such an
approach.
However, implementing better
regulatory reform across government will require clear
accountabilities and effective incentives for departments, a
detailed plan for delivery and longer term management of the flow
of regulation.”
Amyas Morse, head of the National Audit Office, 17 February
2011
The Better Regulation Executive and government
departments are not yet in a position to achieve value for money in
their management of regulation, according to a report published
today by the National Audit Office.
However, the Better Regulation Executive,
created in 2005, and departments have developed important
elements of a structured approach to achieving sustainable
reductions in regulatory costs and have delivered significant
benefits.
Businesses generally recognise the purpose of
regulation, but they believe that it can be unnecessarily
burdensome, particularly on the smallest businesses. Businesses
interviewed by the NAO typically have to consider as many as 60
regulations, governed by many different regulatory bodies.
Businesses, particularly small and medium enterprises, are not
clear on how to comply fully with regulation.
The NAO found that departments are not
communicating effectively with businesses about regulation.
Businesses find it difficult to keep up with the extent of new
regulation and changes to legislation. The BRE, which leads on
regulatory reform across government, understands the issues of most
concern to businesses, but does not have sight of the total scale
of regulation faced by businesses.
Following the change of government in May
2010, the Coalition Programme included several commitments to
regulatory reform. The NAO found departments are currently
conducting evaluations of their existing regulations, but they have
not been taking a systematic approach and no overall attempt has
been made to review the total number of regulations that businesses
face. Furthermore, there is as yet no detailed plan for achieving
the new Government’s regulatory reform objectives.
Departments do not routinely evaluate the impact on business of
regulation once it has come into effect. They are, therefore, not
in a good position to make adjustments to improve regulation in
light of experience.
Publication details:
HC: 758, 2010-11
ISBN: 9780102969498