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Summary oSimplifcationPlans 2009



Contents 2

Contents (page 1 of 2)

Frwrd by h Prim Miisr....................................................................4

Irdui by h Srary f Sa........................................................5

SectIon 1 Summary ....................................................................................6

chapr 1 ..................................................................................................................7Executive Summary..........................................................................................7

What do businesses need to know? ........................................................8What is this report about?........................................................................... 9

chapr 2 ................................................................................................................10 Better Regulation – what next? ..................................................................10

SectIon 2 Admiisraiv Burd Rdui Prgramm............13

chapr 1 ................................................................................................................14 Year 4: Progress so far..................................................................................14

Delivery overview .........................................................................................14

Administrative burden reductions:Progress by individual departments and agencies .........................23

chapr 2 ................................................................................................................31 The Third Sector ..............................................................................................31

2009 achievements ......................................................................................31

Streamlined business practices.............................................................31

Making life simpler for small charities ...............................................31

Making employment law easier ..............................................................32

Wider Simplication........................................................................................33

Reducing funding & monitoring burdens ............................................33

chapr 3 ................................................................................................................35 Helping Small Businesses ...........................................................................35

Examples of Departmental think small rst approaches ............35

8/14/2019 6 Better-Regulation BERR




4Foreword by the Prime Minister

Foreword by the Prime Minister

Creating and maintaininga world-class businessenvironment is essential toeconomic growth. Buildinga robust and exibleregulatory ramework iscentral to this because it

encourages investmentand removes barriers.

The UK already has the bestbusiness environment in Europe,and ranks fth in the world,according to the World Bank.We have made signicantprogress this year pushingforward our ambitiousregulatory reform agenda and

increasing the transparencyand accountability in the waythe Government operates.

We are on track to meet ourpromise of a net 25% decreasein the administrative burdenson business with plans in placeto deliver £3.3 billion in annualsavings to businesses by May2010, and I am pleased that the

Government was able to make afurther commitment this year tocut the annual costs of existingregulation by a further £6.5 billionover the next ve years.

The UK leads the way onregulatory reform, and I amdetermined that we will continueto deliver our ambitious BetterRegulation Agenda, to make

sure that regulation worksbetter for everyone.

Grd BrwPrime Minister



5Introduction by the Secretary o State

Introduction by the Secretary o State

Following the recent globalfnancial crisis and as globalcompetition increases, it ismore important than ever thatthe Government continues toensure a regulatory rameworkthat is air, appropriate andreects the demands o a 21stcentury economy.

The Government is focused onstriking the right balancebetween guaranteeing essentialprotections and rights are upheldand recognising the impact ofexcessive regulations onbusinesses and our third sector.

Our ambitious Better RegulationAgenda is already delivering realbenets. The programme toreduce administrative burdens isachieving billions of net savingsto individual organisations every

year - saving them time, moneyand resources to direct towardsachieving their ambitions forthe future.

We are on target to cut theadministrative burden of existingregulation by 25% by May 2010.

But we want to go further and ournew target of £6.5 billion willaddress both the administrativeand wider costs of regulation.

We are working hard acrossGovernment to establishregulation that is targeted andproportionate and to helporganisations get the simple,

clear advice and support theyneed to implement measureseffectively.

Pr MadlsSecretary of State for Business,Innovation and Skills

The publication of our rstForward Regulatory Programmeand creation of a new body, theRegulatory Policy Committeeshows our commitment toimprove transparency,accountability and externalscrutiny.

This report sets out what theGovernment has achieved sofar this year and since 2005,and we will continue to doeverything we can to fostergrowth, innovation and fairnessthrough better regulation.



SECTION 1

Chapter 1 Executive Summary

Chapter 2 Better Regulation – what next?

Summary

6



SECTION 1 | Chapter 1: Executive Summary 7

Executive Summary

The Administrative BurdenReduction Programme –saving businesses time andmoney by reducing red tape.

Effective and evidence-basedregulations can play a critical rolein correcting market failures, and

provide essential protections forthe general public.

The Better Regulation Agendaencourages Government to cutunnecessary bureaucracy andout of date regulations – makinglife simpler for businesses, thirdsector organisations and thepublic sector front line.

In the current economic climate itis particularly important to makesure that Government creates aworld-leading regulatory

environment, which is fair andproportionate and responds to arapidly changing global economy.

The Administrative BurdenReduction Programme, partof the UK’s Regulatory ReformAgenda, identies, simplies

and sometimes removes theadministrative burden placedon organisations to demonstratethey are complying withregulations.

The Government is committedto reducing the administrativeburden faced by business andthe third sector by 25% by May

2010, and expects to deliverapproximately £3.3 billion netannual savings. By December2009 Government has delivered£2.9 billion net annual savingstowards this target.

Since the beginning of theAdministrative Burden ReductionProgramme in 2005, theGovernment has implemented280 separate simplicationmeasures to reduce the timeand money businesses, charitiesand the public sector spend onadministration.

Her Majesty’s Revenue andCustoms (HMRC) is alsocommitted to reducing theadministrative burden of taxregulation and has been setseparate reduction targets bythe Chancellor. Details of thisprogramme can be found on

the HMRC website1.

Public sector organisationsalso face administrativeburdens. In 2009 there hasbeen real progress on reducingthe number of informationrequests and on reducing theburden of information requestsfrom central Government topublic sector organisations.These reductions are a positiveand tangible step in reducingbureaucracy for the publicsector front line.

1. http://www.hmrc.gov.uk/budget2009/new-relationship-605.pdf

Chapter 1


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What do businesses

need to know?Government has now made 280simplication measures with40 additional measures whichhave started to deliver savingsin the last 12 months. Togetherthese measures are delivering tobusiness the potential to realisean estimated £2.9 billion netannual savings.

In 2008 the Governmentestablished the ExternalValidation Panel. This is anindependent panel includingrepresentatives from theConfederation of British Industry,the Institute of Directors, theBritish Chambers of Commerce,the Federation of Small

Businesses and the TradesUnion Congress.

The External Validation

Panel was set up to test thatsimplication measures in theAdministrative Burden ReductionProgramme were effectivelycommunicated to businesses andwere felt on the ground. This yearthe External Validation Panel hasagain scrutinised theGovernment’s delivery.

In Summer 2009 the External

Validation Panel met again to lookat the delivery of new measures.By May 2009, 77.5% of theProgramme’s total gross savingsdelivery was validated.

The External Validation Panel willmeet again in 2010 to review andvalidate nal delivery across theProgramme.

DefraEnvironmental Permitting Programme

"When you run your own business and you're hands-on all the time, sometimes you look at the volume of paperwork needed and it'sa headache."Before the new system, our licence application

fee would have been around £10,000. But the new permit costs us much less, around £1,300."carl Briai, wr f Mr Rubbl Skip Hir

Waste Management Licensing and Pollution Preventionand Control systems have been consolidated from 41 setsof regulations into just one, a third of the length of theoriginal legislation.

One permit has replaced several types of permit under theold system, meaning that it’s easier for businesses to obtain

the right one.

This means that getting an environmental waste managementlicence is now a very easy process and will save business up to£8.9 milli by December 09.



SECTION 1 | Chapter 1: Executive Summary 9

What is this reportabout?This document provides asummary of the Government’sprogress towards delivering 25%net reduction in administrativeburdens since the beginning ofthe Programme in May 2005,with a particular focus on

progress over the past year.

This summary also reports onthe Government’s progress indelivering wider simplications.It describes the Government’sachievements in:

• reducing the number ofinformation requests fromcentral Government to publicsector frontline workers by30%. By December 2009 a30.8% reduction of informationrequests has been delivered,with further delivery expectedby May 2010;

• inuencing Europe and otherinternational organisationsto promote a culture of betterregulation, ensuring that theUK economy will benet; and

• minimising the policy burdensand key irritants faced bybusinesses. To date,£1.19 billion gross annual

policy savings have been made.

You can nd more informationon individual Departments’achievements in theirSimplication Plans, which arepublished on the BIS website2.

2. http://www.berr.gov.uk/whatwedo/bre/policy/simplifying-existing-regulation/simplication-plans/page44063.html



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

Better Regulation – what next?

The Government has awide-ranging regulatoryreorm programme. Thecurrent programme beganin 2005. In April 2009 theGovernment set out the nextsteps to drive orward theBetter Regulation Agenda.

The recent economic climate hasunderpinned the importance ofthe Government’s focus ondelivering real help for business.In April this year the Governmenttherefore committed to a furtherprogramme of better regulationmeasures tailored to theexceptional economic

circumstances.

Despite the need for newregulation in some areas (suchas climate change, and nancialservices in response to thebanking crisis), the Government

has reviewed the regulationsit is introducing which wouldincrease burdens on businessduring the recession andrecovery. Twenty six plannedregulations will now not beintroduced before April 2011,deferring costs to businesses of£3.5 billion, nearly one third of thenew regulation that was plannedfor introduction over the next 18months. This includes delayinggiving employees of small andmedium sized enterprises (SMEs)the right to request paid time totrain until 2011, to help smallbusiness through the recovery,

and delaying new buildingregulations until 2013.

In October 2009, the Governmentpublished, for the rst time, aForward Regulatory Programme.This provides business with a

comprehensive forwardindication of existing and possiblefuture regulatory proposals toallow for improved medium-termbusiness planning.

The Government is also workingclosely with European Union

partners to further embed the EUBetter Regulation Agenda and toensure the current pressures onbusiness are taken into accountwhen new European regulation isbeing considered.

Looking forward, the Governmentwill adopt new simplicationtargets for 2010 to 2015 which will

address all regulatory costs onbusiness including a further£1.5 billion net annual savingstarget for administrative costsand a £5 billion policy costreduction target.

The Government has also set upa new independent RegulatoryPolicy Committee whose role isto advise the Government onwhether it is doing all it can toaccurately assess the costs andbenets of regulation. Buildingon the work of Philip Hampton,this body will also advise theGovernment on whetherregulators are appropriatelyrisk-based in their work.

Chapter 2



11

CLG Electronic Communicationo Building Control Documents

"The ability to send and receive key buildingcontrol documents by electronic means isgreatly welcomed.“It saves time and effort, not just in terms of printing andpostage but also because the statutory time limit starts virtuallyinstantaneously, whereas for posting you need to allow two days.It therefore means that our business can run more efciently andcost-effectively and this benets our customers too.”

David Mcullgh, tPS

Most building control documents and information transfers cannow take place electronically. This substantially reduces theamount of time and cost of acquiring, completing, submitting and

processing hard-copy documents. This will deliver an anticipatedannual saving of £38 milli by May 2010.

HSE Removal of outdated requirementsHSE has removed eight forms which businesses previously hadto ll out to notify the Government before employing staff in theirpremises. These requirements had little current relevance asthere are other means of obtaining this information.

HSE’s public consultation in Autumn 2008 showed strong support

for removing the requirements. This included support from localauthorities. The amending legislation came into effect in April2009, reducing the administrative burden on businesses by£21 milli annually.

SECTION 1 | Chapter 2: Better Regulation – what next?



12

DfT Dangerous Goods – Instructions in Writing

"If the information is there, in the driver'spossession, and it is legible, that is fine. This isan example of the broader attitude that industrywelcomes, whereby the mildly creative approachis accepted, in the UK at least."Dr Ady Hl, Prdu Swardship Maagr,exxMbil chmial Ld

DfT removed the requirement for companies involved in thetransport of dangerous goods to produce instructions on safehandling of products in the languages of all the countries throughwhich 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?



SECTION 2

Chapter 1 Year 4: Progress so far

Chapter 2 The Third Sector

Chapter 3 Helping Small Businesses

Administrative Burden

Reduction Programme

1313



SECTION 2 | Chapter 1: Year 4: Progress so ar 14

Chapter 1

Year 4: Progress so ar

Delivery in 2009 against thenet 25% administrative burdenreduction or the private andthird sectors.

The Programme continues tomake real world improvements.By December 2009 the

Government has put in place280 simplication measures,delivering an estimated£2.9 billion in net annual savings.

The Government is planning todeliver total net annual savingsof around £3.3 billion by May2010 and is therefore on track todeliver its 2005 commitment to

reduce the administrative burdenfaced by business by 25%.

Delivery overview

The following table shows the total administrative burden reduction deliveryto date across Government and the planned delivery predicted by May 2010.

£m annual admin

burden savings

DeLIeR

to DAte (£M)

PLAnneD

DeLIeRBasli as aD 2009

May 2006 May 2007 May 2008 D 2008 May 2009 D 2009 May 2010

£13,141.0

Net Reductions3 £348 £674 £1,665 £1,950 £2,378 £2,927 £3,290

% Reduction 2.65% 5.13% 12.67% 14.84% 18.09% 22.27% 25.04%

FIGURe 1: Progress in Reducing Administrative Burdens

3. The gures from May 2006 to December 2008 have been revised to reect 2009 baseline adjustments.




In December 2009, theProgramme is on track, and isnow delivering £2.9 billion in netannual savings, meeting thepredicted December 2008delivery forecast. This showsgood recent progress followingsome under-delivery in May 2009against Departments’ December2008 forecasts.

The cross-programme forwardforecast for delivery to May 2010shows that the Programme willdeliver £3.3 billion net annualsavings. However, there is verylittle contingency across theProgramme. It is important that

all Departments manage theirindividual delivery programmesvery carefully over the next vemonths to ensure delivery of thenal target in May 2010.

With this in mind, this year wehave derived a risk-basedanalysis of the programme, whichsets out a cautious estimate ofnal delivery. We currentlyexpect, on the cautious case,that the programme woulddeliver around £3.2 billion inannual savings by May 2010.This cautious estimate takes intoaccount potential delays in thetake-up of some measures.As a result of recent economicconditions, business hasunderstandably been slower thananticipated in taking up some ofthe available opportunities to

reduce administrative costs. Inthis cautious-case analysis weanticipate that the programmewould deliver £3.2 billion by May2010 and the full £3.3 billion in netannual savings by October 2010.

Forestry Commission e-Business or Forestry

"It's virtually a revolutionary change in the waywe handle all the adminstration of our buying.

Electronic trading has saved us a full-time post;it is faster, more efficient, and makes betterdata available, with no need for checking."nil cwa, Hwi Frs Prdus

E-Business for Forestry has moved paperwork required bythe Forestry Commission online. This has brought savingsof over £1.4 milli to its customers.




• By May 2009 Departmentshad delivered an estimated£2.38 billion net annual savingsthrough the AdministrativeBurden Reduction Programme.

• The External ValidationPanel has validated 77.5%

of gross savings reported byDepartments to May 2009.

• Between May and December2009, Departments have madefurther progress. They havedelivered a further £549million net annual savingsto business.

• Savings delivered between

May and December 2009 willbe validated by the ExternalValidation Panel in 2010.

CLGGreater Flexibility forPlanning PermissionsTwo new measures will provide a greater degree of exibilityand reduce the need for completely new applications for

planning permission.

A simplied planning application procedure at a reduced fee willallow property developers to seek an extension to the time limitsfor implementing an existing planning permission. Businesseswill also be able to apply to make non-material changes to anexisting permission through a simple application procedure witha quick turnaround time.

In addition to the £18.6 milli savings for businesses, there willbe a reduction in workload for Local Planning Authorities, as these

measures will reduce the numbers of completely new applicationsfor planning permission.




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

MeASURe PRActIcAL cHAnGeS to BUSIneSSeS totAL AnnUAL GRoSSADMInIStRAtIe SAInGS

AS At DeceMBeR 2009

BISBusiness to consumeradvertising andmarketing rules:Transposition of theUnfair CommercialPractices Directive(Competition Policyand Consumer Law)

Introduction of a general duty not to mislead consumers.Establishment of a single set of rules against unfair salesand marketing practices directed at consumers.

“this has b a vry psiiv xpri fr us – h wrgulais frd us up ad gav us a gui ppruiy xplr w apprahs.” Home Retail Group

(Not yet validated by External Validation Panel)

£309m

BIS

Dispute Resolution(Employment Law)

A key irritant for businesses. Employees and employers have now

greater exibility to undertake early resolution by dealing withworkplace discipline and grievance issues in a way which suitsthem best. They can now follow the Acas Code of Practice, whichsets out the principles that should be followed to address disputes.

(Validated by External Validation Panel)

£115m

HMtBetter regulationmeasures for the assetmanagement sector(Paperless Settlement)

Lifts the previous requirement for paper settlement and transfer oftitle for fund managers, stockbrokers, nancial advisers and otherintermediaries by allowing electronic settlement.


£77m

DH

Electronic prescriptionservice

Reduced transportation of paper prescriptions from prescriber

to dispenser as well as to agent for reimbursement.Reduced information having to be rekeyed by the dispenserand reimbursement agent.


£37.9m

HSeManual handlingoperations regulations

Guidance available to businesses to decide when to label loadsto avoid manual handling injuries to workers.


£32.5m

FIGURe 2: Top New Simplication Measures delivering savings in 2009 (gure continues on the next page)




MeASURe PRActIcAL cHAnGeS to BUSIneSSeS totAL AnnUAL GRoSSADMInIStRAtIe SAInGSAS At DeceMBeR 2009

BISOther Companies ActMeasures (CompanyLaw and Accounting)

Allows companies greater exibility in keeping a registerof directors and members.


£30.5m

HSeElectronic RiskAssessment Template

The electronic template for recording risk assessments savesbusiness time and encourages compliance with the requirement.


£27m

HSeThe Written Health andSafety Policy Statement

By combining the need for a written policy statement and to recorda risk assessment the measurement has reduced duplicatedpaperwork for businesses.


£26.5m

MJLegal Aid- VariousProvisions underthe Civil andCrimes Contract

These measures have been delivered following the introductionof the Civil Unied Contract 2007 and the Unied Contract(Crime) 2008. Reduced burdens include improving systems suchas replacing paper based systems with on-line systems andimproving guidance.


£26.1m

HSeForms project

Removal of requirements on businesses to ll out a form to notifyHSE or their local authority before employing staff in their premisesand keeping registers.


£21m




BIS – Dispute ResolutionChanges recommended by The Dispute Resolution Review were implemented via theEmployment Act 2008 and the new procedures came into force in April 2009. The new framework forresolving 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 thesechanges, employees and employers have greater exibility to deal with workplace discipline andgrievance issues in a way which suits them best and which saves them £115 milli annually.

The new Acas helpline and pre-claim conciliation services were also launched in April 2009 and areprojected to deliver a total of £14 milli savings, £6 milli of which has been delivered to date.

HSEManual Handling Operations

"Additional clarity of best practice and regulation that is readily andeasily accessible through electronic/internet access can only be a good

thing and therefore a supportive tool to supply chain handlers promotingbest practice with suppliers/manufacturers/ importers of goods."Suar Raibw, chairma, Parl carrirs Safy Assiai

Lack of clarity surrounding when it was necessary to give workers guidance on the weight of everyload 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 additionalguidance on labelling loads in May 2008.

Ninety-one percent of respondents who had read the guidance stated in an online questionnairethat the guidance helped them understand when a load needed labelling. Respondents expectedto save between £262 and £1,314 annually from reduced labelling, which translates to £32.5 milli savings across the board.




SIMPLIFIcAtIonMeASUReS

DeScRIPtIon oF SAInGS AnnUAL GRoSS SAInGSAt DeceMBeR 2009

BISEmployment Guidance

The Employment Law Guidance Programme reduces theadministrative burdens imposed by employment law. The GuidanceProgramme has produced free-to-use and legally-compliant online

tools, pro-forma letters and agreement forms, accessible throughwww.businesslink.gov.uk

(£418m validated by the External Validation Panel as at May 2008)

£418m

BISBusiness to consumeradvertising andmarketing rules:Transposition of theUnfair CommercialPractices Directive

Provides a simpler legal framework, to protect consumers fromunfair practices, with a more level play ing eld for business.


£309m

HSe

Example RiskAssessments

Easy to follow examples of risk assessment for 34 lower risk

businesses including convenience stores, dry cleaners andhairdressing salons.

(£163.3m validated by External Validation Panel as at May 2008)

£235m

cLGRepeal of part XI ofHousing Act 1985

Reducing the number of licences required by landlords for low riskmultiple occupancy households (partially offset by burden of £87mfrom new licensing regime).

(£207m validated by the External Validation Panel as at May 2008)

£207m

BISElectroniccommunication

with shareholders

1.2m companies can now send information including annualreports to shareholders by email, rather than hard copy.

(£76m validated by External Validation Panel as at May 2008)

£182m

DcMSLicensing Act 2003

This Act reformed the alcohol and entertainment licensing lawsin Britain into a single piece of legislation.

(£181.1m validated by the External Validation Panel as at May 2008)

£181.1m

FIGURe 3: Top Simplication Measures (by £ million value) since beginning of Programme (gure continues on the next page)




SIMPLIFIcAtIonMeASUReS

DeScRIPtIon oF SAInGS AnnUAL GRoSS SAInGSAt DeceMBeR 2009

cLGCompetent PersonsScheme

1.2 million pieces of electrical work a year are now certied by‘competent persons’, rather than having to go through BuildingControl inspection, saving around £110 per check.

(£132m Validated by External Validation Panel as at May 2008)

£136m

BIS(former DIUS)Weights and Measures

Replacement of the complex Weights and Measures (PackagedGoods) Regulations 1986 to provide a more consistent, certain,accessible and comprehensive law.


£129m

BISDispute Resolution

Businesses no longer need to comply with statutory instrumentsas the Employment Act 2008 allows companies to follow the Acascode of practice. This code sets out the principles to follow whenaddressing disputes.


£115m

DH

Better Regulation ofMedicines Initiative(BROMI) Phase 1

Pharmaceutical companies can now self-certify minor changes to

patient information on over-the-counter medicines, saving themtime and money whilst a llowing the MHRA to concentrate onscrutinising complex changes.

(£104.9m validated by External Validation Panel as at May 2008)

£104.9m




BISEmployment Guidance

Government has transformed the guidance that it provides onEmployment Law. Guidance is now simple, easy to follow andallows employers to take on new employees with condence.

The guidance focuses on particular areas of Employment Lawwhich businesses found the most burdensome or complex. Theguidance available at Business Link (www.businesslink.gov.uk/employingpeople) covers all aspects of employers’ obligations,and includes free access to interactive tools and documents thatare quick and easy to use.

This has helped save businesses an estimated annual£418 million in administrative burdens. BIS is now making thisguidance available directly to businesses in the form of a simpledesktop download that sets out clearly their obligationsthroughout the employment lifecycle - from recruitment,to retention and leaving.

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 itand do their own assessment properly. For small, voluntaryorganisations, that’s really important.

“One group even wrote to us recently to thank us for makingthe process so much easier.”

eam MGraph, cmmuiy Dvlpm Maagr,Ag cr nrflk

Day centres play a valuable role in the lives of many older peoplebut like any workplace they carry certain health and safety risks.

According to Eamon McGrath, the problem of assessing thoserisks is now much easier, thanks to the Health and Safety

Executive’s website and their online tool, ve steps to riskassessment on www.hse.gov.uk/business/risk.htm

HSE produces 34 example risk assessments for differenttypes of low-risk organisations which bring combined savingsof £235 milli per year.




Administrative burdenreductions: Progress byindividual departmentsand agencies

Due to the nature of theirremit, three Departments are

responsible for over 68% ofthe total administrative burdenbaseline (£13.14 billion). Theirmain policy areas impose thelargest administrative burdensas they apply to most businessesin the UK.

• The Department for Business,Innovation and Skills (BIS) -Employment Law

• The Department forCommunities and LocalGovernment (CLG) –Planning Law

• The Health and SafetyExecutive (HSE) – Healthand Safety Law

The table on the next page showsdepartmental delivery to dateand planned delivery for theremainder of the programme.




DeLIeR PLAnneD DeLIeR

DePt BASeLIne

(£M)

tARGetB MA2010 (£M)

tARGetB MA2010 (%)

MA 2009

(£M)

MA 2009

(%)

Dec 2009

(£M)

Dec 2009

(%)

MA 2010

(£M)

MA 2010

(%)

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%

Dfra £458.2 £114.6 25% £55.7 12.16% £90.3 19.70% £91.5 19.98%MJ £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%

Fd SA* £90.5 £22.6 25% -£68.7 -75.86% -£68.7 -75.86% -£24.7 -27.24%

Hm of £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%

chariy cmmissi £36.6 £9.2 25% £1.1 3.05% £6.0 16.43% £6.0 16.4%

cabi of £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%

Frsry cmmissi £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%

FIGURe 4: Progress by individual Departments

*EU food and feed hygiene regulations, introduced on 1 January 2006, increased the Food Standard Agency’s burdenfrom £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





£4,000

£3,500

£3,000

£2,500

£2,000

£1,500

£1,000

£500

£0

£0.35b

£0.67b

£1.66b

£1.95b

£3.290b£3.35b

£3.191b

£2.89b£2.927b

£2.378b

£2.635b

SP09 - bs-as fras May 2010

SP08 - rduis

targ by May 2010 basd D 2009 basli

SP09 - auius fras May 2010

FIGURe 5: Admin Burden Reduction Programme – Net trajectory May 2005 - May 2010.

Cautious and best case forecast by May 2010.

The chart below shows that,following some under-delivery inMay 2009 against Departments̀December 2008 forecasts, inDecember 2009 the programmeis on track and is now delivering

£2.9 billion in net annual savings,meeting the predicted December2008 delivery forecast.

A risk-based analysis of theprogramme has been carriedout to predict the best-case andcautious estimates of naldelivery in May 2010. The cautiousestimate takes into account

potential delays in the take-up ofsome measures, reecting that,as a result of recent economicconditions, some measures arebeing taken up by business moreslowly than originally anticipated.The cautious analysis anticipatesthat the programme will deliver£3.2 billion by May 2010 and thatthe full £3.3 billion in net annual

savings will be delivered byOctober 2010.

Dlivrd

exral alidai Pal sablishd

Fras




Eve Salomon Chair of EVP 2009Independent Chair: former member of the Better Regulation Commission

“The External Validation Panel has a vital role in critically assessing Departments’ simplications.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 todemonstrate that the measures put in place by the Government are actually being felt on the ground.”

Ensuring businesses, third and public sectors

are feeling the benets on the groundExternal Validation Panel

The External Validation Panelwas established in 2008 inresponse to recommendationsfrom external stakeholders,including the National Audit

Ofce. The Government agreedthat, as more measures startedto deliver opportunities forbusinesses to make savings,external scrutiny to assesswhether savings were being feltby business was essential.

The Panel provides a robustchallenge and quality assurancerole and is made up ofrepresentatives from theConfederation of British

Industry, the Institute ofDirectors, the British Chambersof Commerce, the Federation ofSmall Businesses and theTrades Union Congress.

The focus of the ExternalValidation Panel (EVP) is to testthe assumptions underpinningthe reported administrativeburden reductions to ensure the

changes have been effectivelycommunicated to business andthat business is actuallybeneting from the savingsclaimed by Departments.




Dera

NetRegsNetRegs (www.netregs.gov.uk) is a web-based service offeringclear, reliable guidance to UK businesses on how to comply withenvironmental legislation and reduce their environmentalimpacts. It provides free up-to-date guidance specically tailoredto the needs of small and medium sized enterprises (SMEs). Italso serves a wide range of business advisory bodies and tradeassociations across the UK. The guidance covers 36 categoriesof environmental topics and over 110 business sectors.

In a July 2009 user survey, 94% of businesses rated it as a ‘good’or ‘excellent’ business tool.

The EVP validated £10 milli of savings from the NetRegsprogramme (which should rise to £12.5 milli by 2010) andheld up NetRegs as a good example which was well-evidencedto demonstrate that it brings real savings and improvementsto business.

In 2008, the EVP chose toscrutinise the top simplicationmeasures Government

Departments implementedbetween May 2005 and May2008, covering over 80% of thereported gross annual savings.Departments were maderesponsible for the scrutinyof smaller measures.

Following the Panel’s review,gross savings of an estimated

£1.86 billion were validated,covering 87% of reported deliveryup to May 2008.

To complement this scrutiny,Departments and the BRE carriedout their own validation exerciseson smaller simplicationmeasures (over £10 million) so thatoverall 92% of reported delivery toMay 2008 had been veried.

In 2009, the Panel took a slightlydifferent approach to increasethe breadth of their scrutiny of

the programme; by making surethat each Department involvedin the Administrative BurdenReduction Programme hadbeen reviewed by the Panel, atleast once. As a result, 77.5%of the Programme’s total grosssavings delivery to May 2009was validated.

The External Validation Panelwill meet again in Summer2010 to review and validate naldelivery across the Programme,taking into account the savingsrealised since May 2009.

“The External Validation Panel provides a necessary credibility check to the administrativeburden savings that Government Departments claim. The CBI is pleased to have played apart in scrutinising this year’s claims against the experiences o business.”

Lucy Findlay, Confederation of British Industry




totAL GRoSS ADMInIStRAtIe BURDen ReDUctIonSValidated by EVP and BRE/Departments at May 08

£1.985bn

totAL GRoSS ADMInIStRAtIe BURDen ReDUctIonSValidated by EVP in May 09

£454m

totAL GRoSS ADMInIStRAtIe BURDen ReDUctIonSDelivered at May 2009

£3.147bn

% GRoSS ADMInIStRAtIe BURDen ReDUctIonSValidated at May 2009

77.5%

FIGURe 6: Overview of validation

“The External Validation Panel is essential to thecredibility of the Administrative Burden ReductionProgramme. The Panel’s scrutiny of claimed savings notonly engenders condence in the system from externalstakeholders, but also allows civil servants the benet

of a different perspective on their progress. Continuanceof this type of engagement is vital if policymakers are totruly understand the views of the business community.”

Steve Hughes, British Chambers of Commerce

“The FSB was pleased to have been involved with theExternal Validation process of the simplication workof some Government Departments over the last year.It is extremely important that the assumptions andcalculations that Departments made are tested against

what business believes to be the case. Our ndings onthe Panel demonstrate that there are differing opinionsabout how a saving can be calculated and what level ofevidence is needed. The FSB would welcome continuedinvolvement in this work.”

Sara Higham, Federation of Small Businesses




HMTPaperless SettlementThis simplication measure has been in force since March 2009.It lifts the previous requirement for paper settlement and transferof title for fund managers, stockbrokers, nancial advisers andother intermediaries by allowing electronic settlement. As theasset management industry develops, electronic systems arebecoming increasingly efcient and this measure is expectedto save businesses up to £115 milli on an annual basis.

However, the logistics of rolling out a paperless settlementplatform to the asset management industry is challenging as itcomes at a time of difcult market conditions for rms who havetheir priorities elsewhere. As a result take-up by business hasbeen slower than anticipated, however delivery by May 2010 will

still be considerable.

CLGPlanning Portal

"Switching to electronic submission has allowed us to replace a slow, laborious process with one whichis quick and simple," explains David Morton.“An added bonus is that the system checks all the information isinputted correctly before allowing submission. It is impossible to

submit an incomplete planning application.

“Using the portal to submit applications electronically reectsour aims on many levels. Not only do we save paper waste butthe system allows our clients to go online and look at theapplication at any time, anywhere in the world.”

David Mr, Sir Arhi, Hm Arhis.

Electronic processing removes much of the administrationusually associated with submitting planning applications and

has saved businesses almost £40 milli annually.




“The TUC is pleased to have been part of the ExternalValidation Panel; it is very important that the experienceof those affected by regulation is brought to bear inscrutinising the work Departments are doing to make

sure that regulation is effective, simple and accessible.”Sarah Veale, Trades Union Congress

“The External Validation Panel is a necessary realitycheck on the empirical approach to improvedregulation. The examination o Departmentalawareness-raising activities and a ocus on ensuringthe impact and timing o improvements in the real

word are really important unctions o the EVP.”Alexander Ehmann, Institute of Directors

HMT

Paperless Settlement

"It could take up to ten days or more tosettle a UK fund transaction," says Andy."We estimate that settlement will now take place more regularly in just four days."Ady Rudd, Prdu Maagr, eurlar UK & Irlad

Euroclear, based in Brussels, owns the UK’s central securities

depository, which specialises in the settlement of securitiestransactions. Its paperless approach in settling transactions,primarily in bonds and equities, is based on electronic debitsand credits of cash and securities positions.

Before the recent change in legislation, transaction processingfor one remaining UK asset class – investment funds – which ishighly prevalent within the asset or fund management sector,continued to be carried out in paper form.

Andy Rudd explains: “The manual process meant completing the

transaction was time consuming and costly.”

Now these settlement processes for the fund managementsector and those investing in funds can be conducted electronicallypotentially saving business £115 milli annually by May 2010 .



32SECTION 2 | Chapter 2: The Third Sector

Making EmploymentLaw EasierRegulations such as employmentlaw impact as much on the thirdsector as other sectors. It canbe challenging to keep up to datewith changes to employment lawwhich is why the Ofce of theThird Sector (OTS) is launchinga Law & Regulation web portal.This online service provides asummary of regulatory changeswhich have an impact on the sector.

The Department for Business,Innovation and Skills (BIS) and theOTS have made a specic effort in2009 to help ensure that thirdsector employers have betteraccess to the latest employmentguidance through Business Link,which has brought £418 million ofannual savings to employers in allsectors. This information will be

available on the OTS Law &Regulation web portal byDecember 2009.

23,000 Small Charities BenetBenefts to a typical small charity with annualincome o £10 - £25,000

1. Need only complete part of Annual Return form.

2. No longer required to be subject to external scrutiny(independent examination or audit).

3. No longer need to routinely submit accounts and

Trustees Annual Reports to the Charity Commission.4. More accessible, consistent advice and guidance

via Charity Commission Direct http://www.charitycommission.gov.uk/Library/tcc/pds/ccdirect.pd

5. Easier and more convenient way to updateregistration details online.

6. Some charities will benet from a simplied process:• for spending small amounts of capital;• to facilitate mergers; and

• to streamline trustee indemnity insurance andtrustee payments for the provision of services.

7. Stronger inuence through partnership work withsmall to medium charity umbrella bodies.

This represents over £1.66 milli of savings.



33SECTION 2 | Chapter 2: The Third Sector

Wider Simplifcation

Reducing Funding & Monitoring BurdensFunding and monitoring is often highlighted as imposing the most

burden on the third sector.

In 2009 the Ofce of the Third Sector published ‘Principles ofProportionate Monitoring’5 and collaborated with the National AuditOfce to publish ‘Intelligent Monitoring’6. These reports encourageGovernment Departments to take account of the third sector increating less burdensome monitoring regimes.

A number of Departments including DCSF, DfT and MoJ haveembedded the principles of these reports into grant-making practices.This will begin to benet third sector organisations in 2009 to 10.

BISEmployment Law Organiser:Better access to advice guidanceThe Department for Business, Innovation and Skills (BIS) haslaunched a free desktop tool.

Employment Law Organiser provides a summary of the keyobligations that every employer in a small to medium sizedenterprise (SME) needs to meet – from small business managersto charity directors – and includes links through to the relevantfree guidance on the Business Link website.

As many third sector organisations don’t have a dedicated HR teamto help out, the new tool will make it much simpler for bosses tocomply with their obligations, saving them time and money.

Sitting as an icon on a PC desktop, Employment Law Organisercan be opened quickly and used when needed.

The Employment Law Organiser will be automatically updated asand when new legislation is introduced helping employers keep upto date with their obligations.

Employment Law Organiser is in addition to the £418 millionof savings delivered through the employment law guidanceprogramme.

www.businesslink.gov.uk/employmentlaworganiser

5. http://www.cabinetofce.gov.uk/media/216752/principles.pdf6. http://www.nao.org.uk/guidance_and_good_practice/toolkits/intelligent_monitoring.aspx?alreadysearchfor=yes



DCSFProportionate Monitoring o Grants

"We have to answer a number of key questionsabout 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 hadto send it in four times a year. Now the reporting process haschanged to twice a year and I can get it all done in an hour, whichis a real time saver. And the new templates are much easier touse. It’s very valuable for us to save that time. Having the abilityto produce very simple but informative paperwork in a far

reduced style is fantastic for us.”carl olly, Prj Maagr, traspla Spr

The charity Transplant Sport currently receives a three yeargrant from the Children, Young People & Familiesgrant programme.

Project Manager Carol Olley very much welcomes the recentmove by DCSF to simplify the process by which she has to reportback on how the money is being used and cut back on red tape

and administrative burden. For Carol, the reduction in paperworkis now proving much less time consuming.

Overall, these changes are estimated to have savedorganisations £30,000.

SECTION 2 | Chapter 2: The Third Sector 34



35SECTION 2 | Chapter 3: Helping Small Businesses

Small and medium sizedenterprises (SMEs) arecritical to the success o theUK economy. SMEs represent99% o businesses in the UK.This includes sole traders.The contribution SMEs maketo UK GDP is important both or

maintaining employment andeconomic activity through thedownturn and providing growthas we look towards recovery.

The Government’s commitmentto reducing the administrativeburden of regulation for smallbusinesses in the UK is mostclearly demonstrated through

three initiatives.

• Think Small First: The 2008Enterprise Strategy set a newapproach to new and existingregulations for rms employingfewer than 20 people. The

strategy has embedded the‘Think Small First’ principleinto new policy development.

• Reducing administrativeburden: Through theAdministrative BurdenReduction Programme, the

Government has a commitmentto reduce administrativeburdens imposed by existingregulations for all rms,including small rms, by25% by May 2010.

• Improving Guidance:An ongoing focus of theAdministrative BurdenReduction Programme hasalso been to improve guidance,specically to assist smallrms. This has also led toconsiderable savings forsmall businesses.

Examples ofDepartmental ThinkSmall First ApproachesThe Department for Transporthas adopted the ‘Think SmallFirst’ principle in its approach toimplementation of an EU Recast

Framework Directive.

Helping Small Businesses

Chapter 3

1. Dparmal ‘thik Small Firs’ Apprahs

The ‘Think Small First’ principle is embedded across Government.From December 2008 Government is committed to explain why ithas included small business in the remit of all secondarylegislation. This system will apply to primary legislation fromthe 2009-2010 Parliamentary session.

8/14/2019 Better-Regulation BERR



The Government has simpliedthe company law framework

through the Companies Act 2006.The Act has now resulted inannual savings of £390 millionfor businesses by simplifying theregulation and using a ‘ThinkSmall First’ approach. Thechanges include:

• separate and simpler modelArticles of Association for

private companies, reectingthe way small companiesoperate;

• private companies not requiredto have a company secretary;

• private companies not requiredto hold an annual generalmeeting;

• making it easier for companiesto take decisions by writtenresolutions;

• private companies no longerprohibited from providing

nancial assistance for thepurchase of their own shares;

• simpler rules on share capital,removing provisions that arelargely irrelevant to the vastmajority of private companiesand their creditors; and

• separate code of accountingand reporting requirementsfor small companies.

These changes make it easierto set up and run a company,encourage a long-terminvestment culture and provideadditional exibility for investorsin small rms.

DfT

Individual Vehicle Approval

"After using the new Basic IVA regulations onmany occasions, I wanted to write to you and

thank DfT and BIS for really listening to andaccommodating our representations over the last

three years.“We only import very low volumes of left-hand drive NorthAmerican vehicles built to FMVSS and CMVSS standards andthey cater for a tiny enthusiast market in the UK. The complicatedRecast Framework Directive has been implemented in aproportionate way for the micro industry sector that we represent.”

Amria Imprs Ags Assiai

The Department for Transport used an EU directive as anopportunity to introduce alternative national schemes formanufacturers building vehicles for sale only in the UK.Individual Vehicle Approval (IVA) is also available to independent

importers of vehicles from outside the EC. These nationalschemes will be signicantly cheaper than the cost of applyingfor approval under the EC scheme.



37SECTION 2 | Chapter 3: Helping Small Businesses7. http://www.hse.gov.uk/risk/risk-assessment-and-policy-template.doc8. www.businesslink.gov.uk/employmentlaworganiser

BIS

Company Law"As a designated member in a husband and wife Limited Liability Partnership (LLP), I just wanted to say thank you so much for the cleardrafting of the new LLP Application of Companies Act 2006.“Your approach of taking the relevant sections of the 2006 Actand restating them in full as they apply to Limited LiabilityPartnerships is SO HELPFUL! I know the Government was tryingto “think small” in terms of the drafting and implementation ofthe Companies Act 2006, but I was a bit concerned that therewould be all sorts of difcult consequential changes for LLPs,however I think you have now avoided this.

“What you did with the Small LLP Accounts Regulations wasalso very helpful in restating the full requirements. Also, thewhole approach of giving clear implementation dates wellahead is really helpful.”

Dr Garh G Mrga, th Kubrsis Parrship

These changes have brought £900,000 savings for businesses,as part of £390 million wider savings from changes tocompany law.

2. Rduig Admiisraiv Burd

xisig rgulaisThe Health and Safety Executive (HSE) has introduced new help forSMEs. A risk assessment and policy template has been developedfor lower risk SMEs. This template combines the requirements ofa risk assessment, health and safety policy and written record ofhealth and safety arrangements into one document, saving time,resources and costs.

The template was launched on 1 September 20097.

3. Imprvig Guida

The Government has an ongoing programme to improveemployment guidance, specically in relation to small businesses.One innovation has been the development of a new desktop tool,the Employment Law Organiser,8 which includes all the factssmall businesses need to know regarding employment law. Itprovides small businesses with access to advice and tools, is

updated as and when new legislation comes through and has acalendar function that acts as a reminder for small businesses.




DCSF

Removal o requirementto send inormation in hard copy

"Having these documents /policies andprocedures on the website means that they are easily accessible for parents and also updatedwhen necessary without having to send out papercopies every time."

Graham Farm Mssri ShlThe school, an SME, welcomes the removal of the requirement tosend out hard copy information to parents, allowing them topublish information online instead as a “step in the right direction”.

The removal of this requirement will save schools £16.3 milli annually.

BIS

National Measurements Ofce –Using a statistical sample to test products

" We are a small company and these changesare really welcome, particularly during the current economic downturn. We anticipate the new policy will save our business approximately£15,000 every year, a significant and very

welcome benefit."David Hus, thial Advisr f Baum tM Ld

Previously, regulations required each individual alcoholicspirit measuring instrument to be tested to ensure it met thelegal requirements.

Improvements in manufacturing techniques now mean that somemanufacturers can produce instruments in consistent ‘batches’ -if one instrument passed the test then it was probable that all theinstruments in the batch would pass the test.

Following consultation, the National Measurement Ofceamended the legislation to allow the option of testing samplesof the batch as opposed to testing every instrument.




BISThe National Measurement OfceSel-verifcation o equipment

"Like all responsible businesses we strive toreduce our carbon emissions and the changes have enabled us to test, adjust and verify in one visit.

This has allowed us to make better use of ourresources overall including a reduction in costs inexcess of £200,000. Our customers also benefit

from the single visit, through reduced charges,less disruption, and not having inaccurate dispensers out of action."Mihal Hllir, MD, Rail & Frur Sluis Ld

"This will benefit the nine and a half thousand fuel retail sites in the UK, at least seven anda half [thousand] of these being small tomedium-sized enterprises."A spksprs frm h Prl Railrs’ Assiai

Manufacturers, installers and repairers of trade equipment

are now able to self verify after they have adjusted equipmentto improve its accuracy.

This change has mainly benetted petrol and diesel retailerswhose equipment is subject to quite frequent repair. It has savedthe retail fuel industry approximately £615,000 a year.

BISEmployment Law Tools

"It is important to be on top of how to manage your employment obligations if you want to be asuccessful and competitive business. As a smallbusiness, you have to watch every penny and get as much support as possible. I subscribe to the Business Link newsletter service and look at

the site.“The tools on the site are very useful and simple to use.

When I need specic advice I will turn to the professionals butdo a lot of the groundwork myself, and using the site isn’t timeconsuming or complicated.

“We often employ part-time staff and being up to date with thelatest in employment law and legislation helps us to be condentwhen it comes to recruitment decisions.”

Jh charls, carig2ordr

John Charles established Catering2Order in 2007 and now

employs 15 staff. Since the early stages of setting up hisbusiness, he has used many of the tools available onwww.busisslik.gv.uk

Improvements to employment law guidance have savedbusinesses £418 milli a year.



Chapter 1 The Public Sector

Chapter 2 Simplications at the European level

Chapter 3 Reducing policy burdens and irritants

SECTION 3

Wider Simplifcations

(outside o Admin BurdenReduction Programme)

40



SECTION 3 | Chapter 1: The Public Sector 41

Reducing bureaucracyin the Public SectorThe 2007 Government strategy,“Cutting Bureaucracy for ourPublic Services” set out toaddress concerns from frontlineworkers that too much time was

being spent on unnecessarypaperwork and requests forinformation from centralGovernment Departments.The strategy seeks to deliver atangible and permanent reductionin unnecessary Governmentbureaucracy to allow frontlinestaff to spend more timedelivering key services.

Cutting Bureaucracy or ourPublic Services: Key Aims

• Fewer and better co-ordinatedrequests for data from thefront line – 30% reduction ininformation requests fromcentral Government to the

public sector front line by 2010;• A reduction in the stock of

unnecessary bureaucracy inthe areas the front line caresmost about;

• Better engagement withfrontline workers to identifyand remove bureaucracy; and

• Better regulation that isunderstood and mirroredthrough the public servicedelivery chain.

2009 achievements inreducing bureaucracy inthe Public SectorThis year there has been realprogress on reducing the numberof information requests and onreducing the burden of

information requests fromcentral Government. The bulkof delivery has now been made,which is a positive and tangiblestep in reducing centralGovernment bureaucracy forthe public sector front line.

30% Reduction in Numbero Requests or Inormation

In 2007, eleven GovernmentDepartments identied andpublished gures which meantthat, for the rst time,Government had a picture of what

information is being requestedfrom the public sector frontline.

Nine Government Departmentsare now reducing the number ofinformation requests9. To date,a 30.8% reduction has beendelivered across these nineDepartments, ve of which havealready delivered a reduction ofat least 30%.

The Public Sector

Chapter 1

9. As the Department of Health is reducing the ‘number’ of ‘data line’ requests in Social Care (28.6% to date) andthe overall ‘burden’ of data requests in Healthcare they have not been included in this aggregate. Healthcareburden reduction is a larger programme of work and is recorded separately.



SECTION 3 | Chapter 1: The Public Sector 4210. The ex-BERR baseline includes data streams that are now the responsibility of either DECC or BIS

DePARtMent nUMBeR oF InFoRMAtIonReQUeStS In 2007 (BASeLIne)

nUMBeR oF InFoRMAtIonReQUeStS In 2009

eXPecteD nUMBeR oFInFoRMAtIon ReQUeStSIn MA 2010

MJ 82 57 54

cLG 148 91 91

DWP 17 11 8

cabi of 8 8 8

ex-BeRR10 21 15 15

Dfra 20 8 8

Dft 38 26 26

DcMS 33 30 30

Hm of 111 85 75

totAL 478 331 315

FIGURe 7: Delivery on the reduction in number of information requests from central Government




160

140

120

100

80

60

40

20

£0

n U M B e R o F I n F o

R M A t I o n

R e Q U e S t S

MJ cLG DWP co ex-BeRR DeFRA DFt DcMS Ho

numbr f Ifrmai Rquss i 2007 (Basli)

numbr f Ifrmai Rquss i 2009

expd numbr f Ifrmai Rquss i May 2010

DePARtMent

FIGURe 8: Reduction of information requests




MoJCrown Courtchecks stoppedThe number of data itemsneeding verication by courtstaff has been reduced byan estimated 10-15,000.This was a direct productof a Crown Court Data

Quality Steering Group asa partnership between theHM Court Service, Ofcefor Criminal Justice Reform(OCJR) and Ministry ofJustice statisticians. Theyexamined the ow of datafrom courts to Governmentstatistical publications,and how this could

be streamlined.

30% Reduction in Burden oRequests or Inormation

Two Departments are reducingthe burden of informationrequests they impose on publicsector frontline staff through amixture of removing requestscompletely, reducing thefrequency of necessary requestsand making data returns moreefcient and streamlined.

Reducing the burden ofinformation requests has provedmore challenging than anticipatedfor the Department of Health (DH)and the Department for Children,Schools and Families (DCSF). Todate, DH has delivered a 24.3%reduction in burdens onhealthcare professionals, theremaining delivery is expected

by October 2010. DCSF hasdelivered a 9% reduction todate and the remaining deliveryis expected by the end of the2011/12 academic year.

DePARtMent MeASUReD In... 2007 DAtABURDenBASeLIne

% ReDUctIon BDeceMBeR 2009

DcSF Cost £6,400,000 9% (-£595,000)

DHHeALtHcARe

Staff resource Equivalent toapprox 498 FTEstaff over a year.

24.3% (-120.8person years)

Overall, six of the elevenDepartments are on track to

deliver a reduction of at least30% by number of informationrequests and/or by value byMay 2010.

FIGURe 9: Delivery on reduced burden of information requests




Engaging withthe frontline andreducing the stockof unnecessarybureaucracyA range of GovernmentDepartments now have publicsector stakeholder forums inwhich front line workersscrutinise the need forinformation requests fromcentral Government as well asoverseeing the reduction in stockof requests. For example theReducing Data Burdens SteeringGroup monitors informationburdens on local authorities.The steering group is led by theDepartment for Communitiesand Local Government and bringstogether representatives ofcentral GovernmentDepartments, local Government,the Local Better Regulation Ofceand the Audit Commission.

Other groups scrutinising thedata burdens being imposed onthe public sector frontline includethe Bureaucracy ReductionGroup in the Department forBusiness. This group aims tominimise burdens imposed bythe Skills Funding Agency and theYoung People’s Learning Agency.

Also the National PoliceImprovement Agency helpsto drive the reduction ofbureaucracy for the Police.

Finally, DCSF’s ImplementationReview Unit carries out a similarrole in the education sector.

In order to address the burdenof bureaucracy throughout the

public sector delivery chain all ofthe above groups actively engagewith intermediary and deliverybodies such as local authoritiesand strategic health authorities.

CLGSimpler Planning Applications

"At Teesdale we have worked hard to encourage electronic submission because it's a real help to

the administration team. It cuts out the time-consuming process of scanning plans and linkingdrawings to files and eliminates the need for

data entry because the information dropsautomatically into our back office systems.“More than 65% of our applications are now submittedelectronically and the team can process ten a day comparedto three paper forms. We are a small authority with limitedresources and that makes a massive difference.”

Maria Frgus, frmr Dvlpm crl Maagra tsdal Disri cuil

By May 2010, the ability to submit applications electronically andincreased consistency in the Planning System will be saving localauthorities an estimated £85m in addition to private sectorsavings of £137 milli.




DCSFSpecial Educational Needs(SEN) Statementing ProcessIn 2006/07 DCSF asked its frontline workers to identify which werethe key irritants in each of its three sectors (early years, schoolsand 14-19 years). Both early years and schools put the SENstatementing process at the top of the list. A project was set up in

Spring 2007 and reported in May 07, to look at the administrativeprocesses inherent in statementing. It identied a number ofareas, mainly to do with data transfer between schools andauthorities, where enhanced online systems could signicantlyreduce the administrative burden on schools while retainingnecessary assurances. Several options have been considered tosee if it would be possible to link into existing work. DCSF is nowdeveloping a system with the aim to have some results fordiscussion in 2010.

Wider work on improving public sector savingsThe cutting bureaucracy strategy complements the wider Treasury-led public sector efciency programmes: the Value for MoneyProgramme (2007); the Public Value Programme (2008) and theOperational Efciency Programme (2008). All three programmes aregenerate signicant public-sector efciency savings and contributingto reducing unnecessary bureaucracy in the public sector.

In addition to the savings from reducing central government datarequests set out above, Departments’ simplication plans include

details of a range of ways in which they are improving efciency andreducing bureaucracy in the public sector. The examples in the 2009Simplication Plans, which form part of the wider efciencyprogrammes, illustrate £1,322.7 million of annual savings deliveredby December 2009 with projections of £1,453.8 million of savings beingrealised by May 2010.

Going forward, the Government has recently published a plan forfurther reducing the burdens on the front line as part of ‘Puttingthe Front-line First: Smarter Government’11.

11. ‘Putting the Front-line First: Smarter Government’: HM Government, CM 7753, December 2008



47SECTION 3 | Chapter 2: Simplifcations at the European level

“I am committed to a policythat continues to removeunnecessary administrativeburdens and provides the legalcertainty companies need tomake long term investments.By 2012 the next Commissionwill deliver on our commitment

to reduce administrativeburden by 25%.”

President o the EuropeanCommission, José ManuelDurão Barroso,

3 September 2009

Under the leadership ofCommission President Barrosoand former Vice-PresidentVerheugen, EU Better Regulationhas come a long way. Steps havebeen taken to improve both thestock and ow of EU legislationand to embed the ‘Think Small

First’ principle in the EU policy-making process. At the SpringEuropean Council in March 2007,EU Heads of State unanimouslyagreed to set a target to reducegross administrative burdensarising from EU legislation by25% by 2012. The UK Governmentplayed a key role in securing thistarget and is working hard to

deliver it.

The Commission has estimatedthe administrative burdenstemming from the 72 legal actsin scope of the EU Simplicationtarget to be approximately €123.8billion as of 2005. VAT andcompany law were found to bethe most burdensome elds,

together responsible for over80% of the total.

On 22 October 2009 theCommission published a reportsetting out how the EU isprogressing to achieve the 2012target. It lists measures alreadytaken, legislative proposals whichare pending agreement by the

Council and Parliament, as wellas additional ideas for the newCommission to consider.

Simplifcations at the European level

Chapter 2




UK engagement with the EUThe UK is actively engaged withother Member States toencourage the EU institutionsto deliver administrative burdenreductions that will make atangible difference for businessesand others.

In some areas, the EuropeanCommission is following the UK’slead. For example, it is promotingthe Health & Safety Executive’sapproach of producing clear andsimple guidance for employers onhow to assess risks in theworkplace, thus reducing theneed to pay for external advice.In other areas, it is responding to

UK suggestions for simplication.For example, the Governmentcalled on the Commission tosimplify the Biocidal ProductsDirective in 2007.

HSESensible Risk Managementacross the EUHSE successfully inuenced the direction of a EuropeanCampaign on risk assessment, led by the European Agency

for Safety and Health at Work. In line with HSE’s Sensible RiskManagement campaign, HSE proposed that the EuropeanCampaign for 2008-09 should emphasise that good riskassessment is not about completing paperwork for its own sakebut is about identifying and taking practical actions that managehazards and risks so that workers are protected. The Agencyagreed to this approach.




DT Cutting Paperwork for Drivers and

Making Our Roads SaferEuropean legislation has changed many of the rules on drivers’hours and how they should be recorded to help make our roadssafer, while making it less burdensome for those affected tocomply with the law.

One of the biggest changes is a new requirement to equip all newlarge commercial vehicles (mostly trucks and coaches) withdigital tachographs. A tachograph is a device that records timeand distance travelled, and digital tachographs signicantlyreduce the average time needed to record this information. TheDepartment for Transport has estimated that this change to EUlaw could save UK operators £15 milli in 2009, £14.4 milli ofwhich has already been validated by the External Validation Panel.This is set to rise as an increasing number of new vehiclesinstalled with digital tachographs come onto our roads.

HSE The Biocidal Products Directive

This Directive regulates biocides - products used to controlharmful organisms. Biocides include disinfectants, wood andother preservatives and pest control agents.

Problems with the Directive have slowed the review of whetherbiocidal substances are suitable for use in commercial products,to such an extent that a decade after its adoption there are almostno biocidal products approved under it.

Furthermore, the high cost of supporting active substancesthrough the review process has resulted in many existing biocidalproducts being withdrawn from the market for economic reasons.This has hit SMEs particularly hard.

In response to the UK Government’s call for the Directive to besimplied to address these problems, the Commission adopteda proposal to revise this Directive in June this year. The proposedCommission Regulation would provide the option for certainbiocidal products to be authorised once at Community level

instead of in each Member State in which they are placed on themarket. In addition, the proposal sets out more exibility inmeeting data requirements that need to be submitted as part ofthe authorisation process; and proposes mandatory data sharingwith regard to testing of biocidal products that has beenundertaken using vertebrate animals.




The Government will do itsutmost to facilitate swift

agreement of Europeanmeasures that will reduceburdens on UK stakeholders.Departments will continue toreport on savings resultingfrom changes to, or betterimplementation of, EU lawin future editions of theirSimplication Plans.

Increasing permitted levels

o contaminants in Cereals"This has been an extremely important issue

to address for ACFM and has required mucheffort, trust and co-operation from all involved.“We have found working with you and your team tobe very constructive and you have offered guidance and advicethroughout the process which has contributed hugely to theresults achieved. We look forward to continuing this partnership

in the months and years ahead.”

K Wd, chairma f h Assiai f cral FdMaufaurrs Ld

They wrote to the Head of Policy expressing their thanks forthe hard work of the Agency team involved.

“To deliver on our pledgeto reduce burdens onbusinesses by 25% by 2012,we must redouble our eortsto regulate more eectivelyand more rigorously assessimpacts o drat legislation.”

Letter rom Prime Minister,

Gordon Brown, to the Presidento the European Council, 28October 2009

Risk assessment work carriedout by the Food Standards Agency

was instrumental in anagreement reached by theStanding Committee on the FoodChain and Animal Health. Therisk assessment identied thatthere was no signicant risk toconsumers of increasing themaximum permitted level forzearalenone (ZON) for somehigh-bre breakfast cereals. The

Committee therefore agreed atemporary increase in June 2009.

The largely UK-based productionindustry needed this relaxation asadverse weather conditions in theprevious year’s harvest had had aserious impact on consumerchoice and market supply.




Improvements toincoming EuropeanlegislationThe UK has also worked hard toinuence improvements in thequality of new Europeanlegislation. Proof of thisimprovement is the Commission’srevised guidelines for ofcials onhow and when to do impactassessments published inJanuary 2009. A new andwelcome move towards greateropenness was the Commission’spublic consultation on the

proposed changes. Based on itsexperience of successful BetterRegulation initiatives at thenational level, the UKGovernment pushed for a numberof delivered Commissionimprovements: consultations oncomplex proposals, or thoseconducted during holiday periods,should be extended beyond the

minimum eight weeks; impactassessments will be carried outfor some secondary legislation(“comitology”) and there is nowgreater focus on quantifying costsand benets.

th eU Srvis Diriv"This will be an opportunity for smaller authorities tobe able to put their processes online at minimal cost given that so much is being provided by BIS."James Hann, Licensing Manager, Ashord Borough Council

“Have you ever thought of selling your services in the EU? For smallbusiness this is now much easier through the implementation of theServices Directive and the new Points of Single Contact. Informationand formalities about all EU countries can be found online fromyour desktop. This Directive has huge potential for small service

providers to tip their toes into EU markets and expand theiractivities abroad. An opportunity not to be missed!”

Tina Sommer, Chairman International Aairs,Federation o Small Businesses

The EU Services Directive will be brought into force in the UK on28 December 2009. The aim of the Directive is to help open up theinternal market in services further by making it easier for serviceproviders to set up business and offer services in other EEA states.

This is expected to increase output in the UK by an estimated£4 billi £6 billi per year, increase employment opportunitiesand increase trade. UK SMEs in particular are set to benet becausethey are disproportionately affected by barriers to establishmentand account for 44.2% of the UK service sector.

“I am committed to smartregulation, and I want toreiterate that simplifcationo procedures and a

reduction o administrativeburdens on business,particularly SMEs, willremain a priority in the nextCommission. This task, justlike the Impact AssessmentBoard and ex-postevaluation, will be placeddirectly under my authorityto ully reect the priority

I give to it.”

President o the EuropeanCommission, José ManuelDurão Barroso15 September 2009



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

The Government has not set atarget for reducing policy costswithin the current programme.However, Departments areconstantly looking foropportunities to simplifyregulation. As part of the ongoing

DiiPolicy burdens are the costsinherent in meeting the aimsof regulation. These mayimpose capital costs (e.g.purchasing new equipment)

or impose cash costs orproductivity costs (e.g.offering a pension schemeor extending annual leaveentitlement for employees).

Policy costs differ fromadministrative costs whichare incurred in gatheringinformation about a rm’sactivities and providingevidence of compliance.

Reducing policy burdens and irritants

Chapter 3

DeLIeR to DAte PRoJecteD

May 06 May 07 May 08 May 09 Dec 09 May 10

£221.3m £736.8m £917.6m £1,071.2m £1,190.0m £1,464.6m

FIGURe 10: Gross Policy savings for private and third sectors

Better Regulation Agenda,building on the currentprogramme, Governmenthas committed to reducingthe policy costs associatedwith regulations by £5 billionbetween 2010 and 2015.




PoLIcReDUctIonS

DeScRIPtIon eStIMAteD AnnUALPoLIc SAInGS ASAt DeceMBeR 2009

HSeConstruction (Designand Management)Regulations 2007

This regulation simplies the process for checking contractors’competence whilst consolidating four separate pieces of legislation.

£166m

Fd SASafer Food,Better Business

A pack and a simple record-keeping diary aimed at helping small foodcaterers and retailers comply with food safety management procedures.Packs have been developed for various cuisine types, with an interactiveDVD in 16 different languages. Training and coaching advice is also provided.

£128m

DHBetter Regulation ofMedicines Initiative(BROMI)

Multi-award winning BROMI allows industries to gain from streamlinedprocesses and faster time to market.

£104m

DftBetter targetedsafety inspectionrequirements for goodsvehicle and passengertransport (HGV andPSV) operators

DfT published a revised “Guide to Maintaining Roadworthiness” inDecember 2006. The guidance will reduce the number of times somemodern vehicles need to be given vehicle inspections (other than annual‘MoT’ tests), saving time and costs for some operators.

£100m

DftRemoving bilateralrestrictions oninternational air travelto and from the UK

Concluding agreements to remove restrictions on international air travelto the UK which will have the effect of increasing air travel to and fromthe UK. This will increase the revenue of relevant companies.

£100m

Policy Burdens: Process by Individual Department and AgencyThe table below highlights some of the policy savings Departments have implementedthat will benet private and third sector organisations.

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




PoLIcReDUctIonS

DeScRIPtIon eStIMAteD AnnUALPoLIc SAInGS ASAt DeceMBeR 2009

DftReduced burden onradioactive materialtransport industry

Mutual recognition of Certicates for Radioactive Material TransportPackages between UK and France. A single application will result incertication in both UK and France.

£75m

BISOther Companies Actmeasures includingcodication of directors’general duties

This has lead to more predictable and comprehensible laws forprivate businesses.

£68m

HSeFirst Aid Guidance

Allows employers to choose from two training courses in the futurefor their rst aiders.

£52m

Fd SARemoval of Restrictionson use of Beef Bones

Slaughterhouses and cutting plants no longer required to disposeof UK beef bones as animal by-product. They may now sell bonesfor use in food.

£40m

Fd SAReplacement of theOver Thirty Month(OTM) rule

OTM (Over-thirty month) cattle can enter the food chain as long asthey test negative for BSE.

£39m




Home Ofce

Criminal Record Bureau –Electronic ServicesIn April 2009, CRB launched its rst electronic application channel.This is part of a wider programme to make all of its servicesavailable electronically and will eventually see more than onemillion applications submitted using this route. The e-Bulk serviceis aimed at Registered Bodies which each submit more than 3,000applications each per year.

Ann Matthews (Girl Guiding UK) “As an organisation that relies solely

on volunteers to deliver guiding to approximately 600,000 girls andyoung women, a safe and speedy recruitment process is essential.E-Bulk is turning around applications in four days, and the majorityin no more than six. Additionally, it has consolidated our existingprocesses by ensuring our error rate is kept to a minimum.”



Annex A Cautious Predictions –

risks to delivery by May 2010Annex B External Validation Panel

May 2005 – May 2009

Annex C The Measurement Process:The International StandardCost Model Methodology

Annex D Baseline Adjustments

SECTION 4

Annexes

57



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

The Administrative BurdenReduction Programme reportthis year includes best-case andcautious delivery forecasts toMay 2010.

• For some simplicationmeasures, whilst theDepartment has put thelegislative and regulatoryframework in place, offeringthe opportunity for savingsin administrative processes,businesses have not takenadvantage of the opportunitiespresented. This is primarilybecause, given the recenteconomic climate, business

leaders’ attention hasbeen elsewhere.

• In some cases theimplementation ofsimplication measuresis likely to be delayeddue to linkages with thelegislative programme (if aParliamentary Bill is delayedthen the framework changes

cannot be made to supporta simplication). This is, inpart, due to the pressure onParliamentary time over thelast session with unexpectedand more urgent legislativepressures, taking precedencein some cases.

• The cumulative result ofthese two factors is thatDepartments are being morecautious about the deliveryclaims they are makingagainst their targets and theirpredictions for future delivery.

This has led us to carry out amore detailed analysis of theprogramme overall, and the risksto delivery, than in previousreporting years. The results ofthis analysis are shown belowand depict our best-case andcautious estimates of delivery.

Cautious Predictions – risks to delivery by May 2010

Annex A

Our overall view is that theProgramme is still on track todeliver, albeit with tight margins.The Government’s cautiousestimates result in a marginallylower delivery overall. The netcautious estimate for delivery byMay 2010 is £99.8 million lower

than the net best-case estimate,or delivery of 24.28% overall ascompared to the 25.04% best-case estimate.





£4,000

£3,500

£3,000

£2,500

£2,000

£1,500

£1,000

£500

£0

£0.35b

£0.67b

£1.66b

£1.95b

£3.290b

£3.35b

£3.191b

£2.89b£2.927b

£2.378b

£2.635b

SP09 - bs-as fras May 2010

SP08 - rduis

targ by May 2010 basd D 2009 basli

SP09 - auius fras May 2010

FIGURe 5: Admin Burden Reduction Programme – Net trajectory May 2005 - May 2010.

Cautious and best case forecast by May 2010.

Dlivrd

exral alidai Pal sablishd

Fras




DePARtMent MeASURe DeLIeRDeceMBeR2009

BeSt-cASeALUe MA2010

cAUtIoUSALUe MA2010

eXPLAnAtIon

S a v i

g s

Fd SA th Ma Prdus (eglad)(Amdm) Rgulais 2010A reduction in the amount oftime required to decide what

labelling is required for somemeat products

£0m £9m £6.3m Measure is implemented latein the programme and may notrealise full savings

onS Furhr masurs rduh admiisraiv burd fsurvys busiss

£0m £2.9m £1.45m Measure is implemented latein the programme and may notrealise full savings

Dft Irduis f digialahgraphsThe move from analogue todigital tachographs reducesthe cost of making recordsof drivers’ hours, greatlyfacilitating the collection,analysis and storage of datafor HGV operators

£14m £24.76m £17m Whilst measure is in place,take up may be slower thanrst expected

HMt Br Rgulai Masursfr h Ass MaagmSr (PaprlssSlm)Lifts the previous requirementfor paper settlement andtransfer of title for ndmanagers, stockbrokers,nancial advisers and other

intermediaries by allowingelectronic settlement

£77m £115m £94.3m The measure is currentlyin place and delivering,but take up is slower thanexpected due to the currenteconomic climate

Hm of Aimal Sii PrdursInvolves an elimination ofthe requirement to submitdocuments to regulators

£1.63m £1.81m £1.77m Take up may be lower thenrst expected




DePARtMent MeASURe DeLIeRDeceMBeR2009

BeSt-cASeALUe MA2010

cAUtIoUSALUe MA2010

eXPLAnAtIon

S

a v i g s

Ho Firarms A 1968: Rgisrf rarms rasai &supplyig daa f purhasrReviews of the forms used to

reduce duplication, cut downon the stages and make themsimpler to complete

£0.16m £0.18m £0m Take up may be lower thenrst expected

B u r d s

BIS Baris adAumulars DirivAn increased burden asproducers are required toregister and provide reportson batteries and accumulatorsand spent batteries andaccumulators

-£1m -£1.4m -£2.1m Total burden will depend on thenumber of businesses affectedby change in regulation

cLG Prmabl Surfaig

Impermeable surfacingof domestic front gardenswould be subject to planningpermission to reduce surfacewater run off

£0m -£0.3m -£0.5m Total burden will depend on the

number of businesses affectedby change in regulation

totAL £239.75m £139.89m

DIFFeRence £99.86m



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

External Validation Panel May 2005 – May 2009

Annex B

The External Validation Panelwas established in 2008 inresponse to recommendationsrom external stakeholders,including the National AuditOfce. Government agreedthat, as more simplifcationmeasures started to deliver

opportunities or businessesto make savings, externalscrutiny was essential toassess whether the reportedsavings were being elt bybusiness on the ground.

The Panel provides a robustchallenge and quality assurancerole and is made up ofrepresentatives from theConfederation of British Industry,the Institute of Directors, the BritishChambers of Commerce, theFederation of Small Businessesand the Trades Union Congress.

The remit of the ExternalValidation Panel (EVP) is to testthe assumptions underpinningthe reported administrativeburden reductions, to ensure thechanges have been effectivelycommunicated to businessand that business is actually

beneting from the savingsclaimed by Departments.

Summary of2008 validationThe Panel met for the rst time in2008 and chose to scrutinise thetop simplication measuresGovernment Departments hadimplemented between May 2005and May 2008, a sample coveringover 90% of the reported grossannual savings. Departmentswere made responsible for thescrutiny of smaller measuresdelivering more than £10 millionin annual savings.




nUMBeR oFMeASUReS

totAL GRoSS(£M)

May 08 dlivry sld frrviw by eP08

24 £1,992.0m

May 08 dlivry sldfr rviw by eP08

182 £284.6m

totAL GRoSS SAInGS toMA 08 RePoRteD In SP08

totAL GRoSSSAInGS toMA 08 RePoRteD ASALIDAteDIn SP08

% oF MA 2008DeLIeRALIDAteD B eP

£2,148.0m £1,863.4m 86.75%

nUMBeR oFMeASUReS

totAL GRoSS(£M)

Masurs ralisig vr£10m grss savigs as a May2008- validad by eP

8 £121.3m13

totAL GRoSS(£M)

Dlivry validad by h eP08 £1,863.4m

Dlivry wihdraw frm heP08 prss

£96.1m*

Dlivry dfrrd by h Pal £32.5m**

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

FIGURe 15: EVP08’s outcome

* see Figure 19 for breakdown

** see Figure 20 for breakdown

EVP08 asked Government to review the remaining 182 simplicationmeasures to ensure they were credible. BRE and Departmentsundertook this exercise for measures realising over £10m grosssavings as at May 2008 which represented over 70% of the remainingmeasures delivering at that time and not subject to external scrutiny.

13. This gure does not include two measures delivered by MoJ regarding Legal Aid Reforms wortha total of £27.65m which were incorrectly included in the BRE/Department validation total in the2008 Summary Report. These measures were subsequently put forward to the EVP09 to ensuresavings were effectively implemented and felt by businesses.





GRoSS MA 08DeLIeR ALIDAteDB eItHeR eP oRBRe/DePARtMentSAcRoSS tHePRoGRAMMe

% oF MA 2008DeLIeRALIDAteD

£2,148.0m £1,984.7m 92.4%

totAL GRoSS SAInGS toDec 08 RePoRteD In SP08

GRoSS Dec 08DeLIeR ALIDAteDB eItHeR eP oR

BRe/DePARtMentSAcRoSS tHePRoGRAMMe

% oF Dec 2008DeLIeRALIDAteD

£2,630.0m £1,984.7m 75.5%

FIGURe 17: Result of 2008 validation




eP ReF DePt SIMPLIFIcAtIon nAMe ALUe cLAIMeD BDePt AS At MA 08

IMPLeMentAtIon DAte(DePt)

ALUe ALIDAteDB eP (MA 08)

FInAL eP08 StAtUS

EVP08 1 BeRR Electronic communicationwith shareholders

£76m May 2007 - May 2008 £76m Fully validated

EVP08 2 BeRR Capital Maintenance £68m May 2007 - May 2008 £68m Fully validated

EVP08 3 BeRR Remove requirementfor private companiesto hold AGM

£45m May 2007 - May 2008 £45m Fully validated

EVP08 5 cLG Housing Act 1985 Repealof Part XI

£207m May-05 £207m Fully validated

EVP08 6 HSe Sensible RiskManagement - ExampleRisk Assessments

£163.3m May-08 £163.3m Fully validated

EVP08 7 cLG Competent PersonsSchemes

£132m Dec-05 £132m Fully validated

EVP08 8 DIUS Weights and Measures:Weights and Measures(Packaged Goods)regulations 1986


EVP08 9 DH BROMI + EU +Pharmaceutical


EVP08 10 DcMS Licensing Act 2003 £181m May-06 £181m Fully validated

EVP08 11 DWP Replace minimum fundingrequirement 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 EmploymentGuidance measures


FIGURe 18: Measures fully validated by EVP08 (gure continues on the next page)




eP ReF DePt SIMPLIFIcAtIon nAMe ALUe cLAIMeD BDePt AS At MA 08



FInAL eP08 StAtUS

EVP08 17 Dft Revision of the passengerrail franchise map,

reducing the numberof separate franchises


EVP08 18 Fd SA Safer Food,Better Business


EVP08 19 HSe Control of AsbestosRegulations

£27.7m Dec-06 £27.7m Fully validated

EVP08 20 DWP Improve pensionregulations to makepayments by employersless prescriptive


EVP08 22 HSe Workplace (Health, Safetyand Welfare) Regulations- guidance on labellingdrinking water


EVP08 23 HSe Reporting of Injuries,Diseases and DangerousOccurrences Regulations(RIDDOR)

£16.5m Dec-07 £16.5m Fully validated

EVP08 24 DWP Simplify member-nominated trustee/director requirements


SUBtotAL £1863.4m £1863.4m



70

NotValidated

1,480m

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

Summary of 2009 validationIn 2009, the Panel took a slightly different approach to increase thebreadth of their scrutiny across the programme by making sure thateach Department involved in the Administrative Burden Reduction

Programme had been reviewed by the Panel, at least once, eitherin 2008 or in 2009. As a result, EVP09 reviewed and challenged:

FIGURe 22: EVP - BRE/Department’s Review

nUMBeR oFMeASUReS

totALGRoSS (£M)

nUMBeR oFDePtS

Ay xisig r wsimpliai masur wihaual savigs f vr £10milli whih had yb validad by h Pal.

26 £760.6m 10

th largs simpliaimasur fr ah Dparmr Agy wih a smalladmiisraiv burdbasli (lss ha £10m).

5 £25.2m 6

totAL ReIeWeD B eP09 31 £785.8m14 16

14. This total value includes measures initially selected by the panel which were withdrawn during thescrutiny process (DCSF - Independent Schools (£18.1m) and DEFRA - The Animal Welfare Code ofrecommendations (£10m))

GrossMay 2009Savings£3,147m

GrossDec 2009Savings£3,921m

2008Validated£1,985m

Validated£2,439m

EVP09

Validated£454m

NotValidated

£707m

May 2009 ABRPdlivry (£m)

77.5% validad 62.2% validad

D 2009 ABRPdlivry (£ms)




FIGURe 23: EVP09 Overview FIGURe 24: Result of 2009 validation

totAL GRoSS(£M)

% oF neW DeLIeRPUt FoRWARD toeP09

Dlivry validad by h eP09 £453.94m 57.8%

Dlivry b rprd asdlivrd bu validad £150.1m 19.1%

Dlivry dfrrd by h Pal £181.8m 23.1%


GRoSS MA 09DeLIeR ALIDAteDB eItHeR eP oRBRe/DePARtMentSAcRoSS tHePRoGRAMMe

% oF MA 2009DeLIeR ALIDAteD

£3,147m £2,438.64m 77.5%

totAL GRoSS SAInGS toDec 09 RePoRteD In SP09

GRoSS Dec 09DeLIeR ALIDAteDB eItHeR eP oRBRe/DePARtMentSAcRoSS tHePRoGRAMMe

% oF Dec 2009DeLIeR ALIDAteD

£3,921m £2,438.64m 62.2%

totAL GRoSS(£M)

% AcRoSS tHePRoGRAMMe

tal May 05 – May 09dlivry ihr validadby eP r BRe/Dparms

£2,438.62m 77.5%

totAL GRoSS(£M)

Grss May 09 dlivry b rprd i SP09

£3,146.5m

totAL GRoSS(£M)

Grss D 09 dlivry b rprd i SP09 £3,921m




eP ReF DePt SIMPLIFIcAtIon nAMe ALUe cLAIMeD BDePt (MA 09)



FInAL eP09 StAtUS

EVP09 1 BIS(x BeRR)

Dispute resolution(Employment Law)

£115m Jan-May 09 £115m Fully validated

EVP09 3b DWP Employers’ LiabilityCompulsory Insurancecerticates (Review) -Part 1&2

£21m June-Dec 08 £21m Fully validated

EVP09 5a BIS(x BeRR)

Simpler law for smallerrms (Company Law andAccounting)

£21.60m June-Dec 07 £21.60m Fully validated

EVP09 5b BIS (xBeRR)

Simpler law for smallerrms (Company Law andAccounting)

£16.80m June-Dec 07 £16.80m Fully validated

EVP09 7 cLG Delivering electronic

capability a) StandardPlanning Application Form


EVP09 9 HSe Manual HandlingOperations Regulations

£32.50m Jan-May 09 £32.50m Fully validated

EVP09 11 cLG Delivering electroniccapability b) validity criteria


EVP09 13 cLG Fire Safety RRO £21m June-Dec 06 £21m Fully validated

EVP09 14 HSe Forms project (Removalof 8 forms required bythe Factories Act, Ofces,Shops and Railway

Premises Act (OSR Act))


EVP09 15 cLG E-Enablement of BuildingControl Service

£20m June-Dec 08 £20m Fully validated

EVP09 17 MJ Legal Aid Reforms-Implementation of the CivilUnied Contract (Removalof 3 data requirements fromNot for Prot Contracts)


FIGURe 25: Measures fully validated by EVP09 (gure continues on the next two pages)







FInAL eP09 StAtUS

EVP09 18 Dft Drivers’ Hours (3) £15.4m Jan-May 08 £15.4m Fully validated

EVP09 19 Dft Introduction of digitaltachographs


EVP09 20 cLG Delivering electroniccapability c) E-planning


EVP09 21 MJ Legal Aid- Implementationof the Unied Contract

£9.4m Jan-May 08 £9.4m Fully validated(it is acknowledgedthat MoJ presenteda cautious estimateof delivery to the Panel– MoJ now believethis measure to bedelivering £12.05m)

EVP09 23 HSe Health & SafetyInformation for EmployeesRegulations- the HSE lawposter/approved leaet


EVP09 24 Dfra NetRegs £10m June-Dec 06 £10m Fully validated

EVP09 26 onS Reduction to sample sizesfor a number of surveys


EVP09 28 Frsrycmmissi

Plant Health £0.34m Jan-May 06 £0.34m Fully validated

EVP09 29 DcSF Early years census £9.8m Jan-May 09 £9.8m Fully validated

SUBtotAL £431.84m £431.84m



74




FInAL eP09 StAtUS

EVP09 10 Hm

of

Points Based System

(PBS) for Work Permits

£25m Jan-May 08 £12.5m Partially validated -

delivery which can bereported as deliveredbut unvalidated in SP09

EVP09 22 Dft Introduction of electronicvehicle licensing (EVL)

£10.7m Jan-May 06 £9.6m Partially validated -delivery which can bereported as deliveredbut unvalidated in SP09

SUBtotAL £35.7m £22.1m

FIGURe 26: Measures partially validated by EVP09

eP ReF DePt SIMPLIFIcAtIon nAMe ALUe cLAIMeD BDePt (MA 09) IMPLeMentAtIon DAte(DePt) SAInGS WHIcHcAn Be cLAIMeDIn SP 09 BUt ASUnALIDAteD

FInAL eP09 StAtUS

EVP09 3a DWP Employers’ LiabilityCompulsory Insurancecerticates (Review) -Part 1&2

£37m June-Dec 08 £37m To be reported asdelivered but unvalidated

EVP09 4 cLG Householder DevelopmentConsents Review (HDCR)

£45m Jan-May 09 £6.3m To be reportedas delivered butunvalidated15

EVP09 6 HSe Good practice on workerinvolvement £36.6m June-Dec 08 £36.6m To be reported asdelivered but unvalidated

EVP09 8 HSe Lifting Operations& Lifting EquipmentRegulations and Provision& Use of Work equipmentRegulations

£33m June-Dec 08 £33m To be reported asdelivered but unvalidated

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

SECTION 4 | Annex B: External Validation Panel May 2005 – May 200915. 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.






SAInGS WHIcHcAn Be cLAIMeDIn SP 09 BUt ASUnALIDAteD

FInAL eP09 StAtUS

EVP09 12 Dfra Common Agricultural

Policy Single Paymentand Support SchemesRegulations 2005

£21.20m June-Dec 05 £21.20m To be reported as

delivered but unvalidated

EVP09 27 chariycmmissi

Trustees Annual Report(TAR) (i) Changes toRegistration threshold in2006 Act, (ii) Increase inAudit threshold in 2006 Act

£2.4m Jan-May 07 £2.4m To be reported asdelivered but unvalidated




ALUe WItHDRAWn FInAL eP09 StAtUS

EVP09 16 DcSF Independent Schools:10 information obligations(package)

£18.1m Delayed £18.1m Withdrawn

EVP09 25 Dfra Animal Welfare Codeof Recommendations

£10m Delayed £10m Withdrawn


FIGURe 28: Measures withdrawn from EVP09 process



76SECTION 4 | Annex C: The Measurement Process

The measurement ofadministrative burdens was asubstantial and complexundertaking involvingDepartments and regulatorsacross government, co-ordinatedby the Better RegulationExecutive. The originalmeasurement was carried outbetween May 2005 and May 2006and the results form theadministrative burdens baselineas of May 2005. It was against thisbaseline that each participatingorganisation agreed to a netadministrative burden reduction

target of 25%, to be achieved by2010 (except for Cabinet Ofce,who chose a 35% target).

There were two key stagesto reaching the originaladministrative burdens baseline:

• the initial measurement ofadministrative costs; and

• calculating from theinitial measurement theadministrative burden byapplying a business asusual adjustment.

Stage 1MeasurementAdministrative costs are theannual reoccurring costs ofadministrative activities thatbusinesses and the third sector

are required to perform in orderto comply with the obligations thatare imposed through centralGovernment regulation. Theseinclude, for example, form lling,keeping records or responding toinformation requests.

The measurement of theadministrative costs of regulation

impacting business and the thirdsector was undertaken using theStandard Cost Modelmethodology, as recommendedby the Better Regulation TaskForce. The Standard Cost Model

methodology does not set outto achieve a statistically robustestimate of administrative costs,as this requires a huge samplesize, incurring disproportionateexpense.

Instead, it provides a systematicapproach to measurement thatprovides indicative data on theadministrative costs of regulation.International experience hasshown this approach to bevaluable in understanding theregulatory landscape and focusin simplication activity. TheStandard Cost Model methodology

breaks down regulations into arange of manageablecomponents. This enables thesystematic measurement of thecost of regulation across

The Measurement Process:The International Standard Cost Model Methodology

Annex C




Government through extensiveinterviews and focus groups with

individual businesses, charitiesand voluntary sectororganisations.

These components are calledobligations. An obligation is thespecic requirement that mustbe undertaken in order to complywith a regulation.

All central Government

regulations were mapped.The responsible GovernmentDepartment and the origin of theregulation were then identied,the required obligations dened,and the costs measured.

The Standard Cost Modelcalculates the administrative

costs arising from a regulationby measuring four key factors:

• how long it takes to complywith the obligation (tim);

• the wage rate of the person whoundertakes this (Wag Ra);

• how many organisations carryout the obligation (Ppulai);

and• how frequently (each year)

the obligation is carried out(Frquy)

Unit cost* x Quantity

(Time x Wage Rate) x (Population x Frequency)

FIGURe 29: SCM formula

Multiplying the tim andWag Ra provides the Ui cs of

the obligation. Multiplying thePpulai and Frquyprovides the Quaiy. The Uics and the Quaiy are thenmultiplied to establish theAdmiisraiv cs. Thishas been illustrated below:

* including external costs




The Unit Costs also includes anyoverheads or external goods orservices required in order tocomply with the obligation within

the regulation.The cost, quantity, population andfrequency elements of thecalculation were estimated usinginput from businesses or businessassociations.

This was done through extensiveface-to-face interviews, telephoneinterviews, expert panels, virtual

panels and assessment withconsistent validation throughMonitoring Groups consisting ofkey stakeholders to advise andchallenge the results.Government Departmentscommissioned PricewaterhouseCoopers to carry out thismeasurement, which involvedover 8,500 interviews and over 200

expert panels. All of the regulationthat was in force as of May 2005represented the originaladministrative burden baseline.

Departments have continuedto measure the administrativeburden of regulations introducedsince May 2005 using the same

approaches outlined above inorder to report progress on theirnet reduction targets. This year’splans reect the administrativeburden of any regulationsintroduced between June 2005and December 2009.

Stage 2Adjusting or

business as usualOnce the measurement exercisehad established the administrativecosts of regulation, theGovernment applied a pragmaticand credible process to estimatethe percentage of the totaladministrative costs that consistof activities that business would

do anyway. This is termed thebusiness as usual cost.Subtracting the business as usualcost from the total administrativecost estimate gives an estimate ofthe administrative burden.

The administrative burdenis dened as the cost ofadministrative activities overand above what a business would

choose to do in the absence of theregulation. The business as usualapproach is about focusingGovernment’s reduction efforton the burdens that are of realconcern to business. There islittle benet to business fromsimplifying activities that businesshas indicated they would chooseto undertake even if the regulation

did not exist.

The process to estimate suitablebusiness as usual adjustmentswas carried out with the fullsupport and assistance of the

business community and the thirdsector. An independent panelagreed the business as usualprocess and methodology anddetermined what activity businesswould do in the absence ofregulation. Data from themeasurement exercise was usedas a basis to calculate indicativeestimates for this activity for all

information obligations. The Panelthen considered and challengeddata for the informationobligations that made up 70%of the total administrative cost.



79

The measurement ofadministrative burdens wascarried out from May 2005 andcompleted in May 2006 and theresults form the administrativeburden baseline as of May 2005.It was against this baseline thateach participating Department,

regulator or agency involved inthis programme agreed to a netadministrative burden reductiontarget of 25% to be achieved byMay 2010 (except Cabinet Ofcewho agreed a target of 35%).

However, there have been anumber of baseline changessince May 2005:

• to reect ay Mahiryf Gvrm hags which could lead to individualregulations transferringbetween Departments; and

• to correct ay rrrs mad by the initial measurementexercise.

Criteria for technicaladjustments to the baseline

Baseline adjustmentsshould be approved if thereis overwhelming evidencethat a signicant error hasbeen made to the followingcategories:

• regulation(s) that shouldhave been measured, butwere not; and

• population information,external goods or services,internal time or wage rate,or business as usual factorshave been signicantly overor under estimated.

Baseline Adjustments

Annex D

SECTION 4 | Annex D: Baseline Adjustments



80SECTION 4 | Annex D: Baseline Adjustments

DePARtMent BASeLIne AtDeceMBeR 2008

MAcHIneR oFGoeRnMentcHAnGeS

tecHnIcALADJUStMentS

BASeLIne AtDeceMBeR 2009

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

MJ £369.4m -£13.47m (5) £356m

2009 Baseline adjustmentsThe Departments for which baseline adjustments have been madein 2009 are outlined below.

FIGURe 30: Technical and Machinery of Government changes

1.Machinery of Governmentchange resulted in £78.3mtransferring from BERR toDECC. This left BERR witha baseline of £3,990m.Subsequent Machinery ofGovernment changes resultedin transferring £3,990m from

BERR and £543m from DIUSto the newly formed BIS.

2. BIS made a net baselineadjustment by removinga total of £44.3 millionincluding the Companies Act2006; Insolvency (Amendment)Rules 2009; The LegislativeReform Order (Insolvency)(Miscellaneous Provisions)

Order 2009; and ExportControl; and DRID 1955Employment AgenciesEstate Agents (Accounts)Regulations 1981.

3. Machinery of Governmentchange resulted in transferringfrom DEFRA (0.2m) and BERR(78.3m) to DECC.

4. DECC made a baselineadjustment of £2.7 million totransfer back to BIS (ex-BERR)

an information obligationrelating to Export Control.

5. MoJ made a baselineadjustment removing a total of£13.4 million relating to probateand letters of administration,data protection and accountsrules for solicitors andregistered foreign lawyers.



81SECTION 4 | Annex D: Baseline Adjustments

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%

Dfra £458.2 £114.6 25% 3.49%

MJ £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%

Fd SA £90.5 £22.6 25% 0.69%

Hm of £83.0 £20.8 25% 0.64%

onS £48.7 £12.2 25% 0.37%

chariycmmissi

£36.6 £9.2 25% 0.28%

cabi of £15.4 £5.4 35% 0.12%

Geo £5.7 £1.4 25% 0.04%

Frsrycmmissi

£1.46 £0.4 25% 0.01%

Decc £76.97 £19.216 N/A N/A

totAL £13,140.3 £3,286.6

FIGURe 31: 2009 Departmental baseline and target

16. 25% of baseline indicated for completeness: no simplication target was set for DECC due to its lateinclusion in the Programme (October 2008).



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