UK approach to independent scrutiny to achieve better regulation 30/05/16

What we do Independent advisory body set up to providing external, real time scrutiny on the quality of evidence and analysis supporting regulatory changes affecting business and civil society –By giving ministers opinions in advance, helps ensure decisions on legislative proposals are based on a robust evidence base –Provides businesses and the public with confidence that the government’s claims on regulatory reform are credible, for example £10bn statutory deregulation target Committee comments only on quality of evidence not on policy 2

Who we are Committee members made up of 8 representatives of business, civil society, legal profession, academia, including 2 professional economists –appointed by open public process –independent of government –work on a part-time but continual basis Supported by secretariat of 15 civil service policy advisers and economists Meet monthly Opinions determined by exchange Michael Gibbons CBE, Chair Sarah Veale CBE Alexander Ehmann Martin Traynor OBE Ken Warwick Nicole Kar Jonathan Cave Jeremy Mayhew 3

Our evolution 4

INDEPENDENCE Key to our success is independent scrutiny which provides: stronger challenge to policy makers a driver for culture change and improved impact assessments counter to bias towards regulation, optimism enhanced credibility of government’s regulatory framework external expertise increased transparency

Scope of our work 6 All changes in primary and secondary legislation affecting business and civil society, except tax, spending, fees/charges, and public procurement Activities of independent regulators Three main responsibilities: 1.scrutinise evidence base for new regulatory burdens on business, including rationale, alternatives, and small business impacts; 2.verify impacts of all regulatory proposals, both those qualifying for business impact target and those not; 3.confirm split between qualifying and non-qualifying proposals. Summary of proposals scrutinised by RPC in last parliament

Impact Assessments A continuous process to help: –Think through the objectives for government intervention –Weigh up various options –Understand the consequences of each option A tool that presents the costs, benefits and risks of a proposal 7 recommendations: 1.Don’t presume regulation is the answer 2.Take time and effort to consider all options 3.Have substantive evidence 4.Produce reliable estimates of the costs and benefits 5.Assess non-monetary impacts thoroughly 6.Explain and present results clearly 7.Understand the real cost to business of regulation Sources of Advice: –Better Regulation Framework Manual –Treasury ‘Green Book’ What the UK considers: –Administrative costs –Policy costs –Benefits –Only costs incurred by business –Impact Assessments should set out wider costs and benefits (but these are not scored)

Actal & RPC Scrutinises every new proposal including of EU origin; Encourages use of alternatives; Does not review the stock of regulation; Considers the impacts on all businesses, voluntary and community bodies; Has clear process of post implementation review; Special test for impact on all small and micro businesses. #CutRedTape (stock) Selects the items on which it issues advice; Encourages use of alternatives; Reviews the stock of regulation; Focus on the business community, by citizens, and by professionals in the healthcare, education, security and social security sectors

Impact of the work of the RPC Reviewed 1200 regulatory proposals 1200 Driven a 22% improvement in IA quality 22% Improved the accuracy of the Government’s account of costs and savings to business by £600m £600m During the last Parliament ( ), the RPC has:

Key achievements - Quality of impact assessments improved in last parliament… 10

Key achievements - credibility with business groups and civil society organisations 11

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