Win Win Win: can we have regulation that protects people, supports business and costs less? Graham Russell Director Better Regulation Delivery Office

Current Issues Primary Authority Extension Competency Growth Duty and Code

What is better regulation and where has BRDO come from and where is it going? 1.UK Better Regulation Principles Targeted Accountable Consistent Transparent Proportionate 2.Hampton Review, Anderson, Macrory and Rogers Reviews 3.BRDO priorities are: Primary Authority and business engagement Simplifying regulatory delivery

The Local Better Regulation Office (now BRDO) Established in 2007 Delivery of regulation at the local level Six statutory functions Staff team of around 25 Expertise in inspection and enforcement, policy, research and evaluation Annual budget of £3.7 million grant in aid Remit: trading standards, environmental health, licensing and fire

Policy context - the Regulatory Landscape in numbers  12 different government departments making regulations or regulatory policy  Over 60 national regulators involved in policy and delivery  Over 200 pieces of legislation in scope  Delivered by 433 local authorities  Representing 1% of local government spend  Contributing to 48 different outcomes

BRDO

The regulatory policy agenda Rule making Reduction of unnecessary burdens on business Change in policy making culture - regulation only when necessary –One in one out –Red Tape Challenge –Alternatives to regulation –Regulatory impact assessment Regulatory Delivery Reduction of unnecessary burdens on business Risk based, targeted, proportionate Change in culture –Better inspections –Consistent enforcement –Alternatives to regulation –Post implementation review

Good regulation is:...choosing the right methods to move from risk to outcomes Risks Outcomes Interventions

Intervention Strategies

Regulatory outcomes Place People Production Green Growth Safe Communities Environment Economy Society Prosperous communities Quality of life

In March 2012 BRDO published a paper ‘Regulation and Growth’ Demonstrates how good regulatory delivery can also be good business Regulation and Growth

‘Good’ regulation can support growth, as much as ‘poor’ regulation hinders it The way regulation is delivered (enforcement) matters Key aspects of delivery include: - Right level regulation-local/regional/national - Hearing business as the ‘customer’ of regulation Prosperity and Protection

We believe that, delivered well, regulation can create the conditions for economic growth by: reducing business costs; increasing profitability through confidence and control over business processes; and delivering wider economic impacts Good Regulatory Delivery = Growth for Business

Minimises transactional costs Mitigates regulatory risks Minimises reputational costs Reduce Business Costs

Provides day-to-day management control Ensures recognition for investment in compliance Enables confident future planning and investment Increase Confidence and Control

Ensures a level playing field Provides local community benefits to businesses and citizens Contributes to shared outcomes at a national level Realise Wider Economic Benefits

New EU requirements might increase compliance costs for 400,000 SMEs An optional, business friendly management system Contains a pull out step-by-step checklist and diary pages to record checks and was tailored to different business sectors 87% of SMEs reported that it helped them manage their businesses 45% felt that it made their businesses more profitable Safer Food, Better Business: Food Standards Agency

Why use risk based approaches? More efficient and effective Target resources Reduce burdens on business More transparent to business

Strategic approach to risk

National Priorities National Threats National Regulators’ Strategies Central Government Direction Local Priorities Socio-demographic Environment Tradition / culture Local democracy Place Shaping Regional Strategic Analysis Strategy Delivery Evidence Based Perception v Reality Prioritisation Local / National Intelligence Assessment

Profile of businesses Higher Risk Medium Lower risk

Risk.... Information Analysis Intelligence Risk = Hazard x Likelihood

Specialist Intervention Generic Assessment Earned Recognition Reduces Risk Common Risk Framework Common Assessment of Likelihood of Compliance Sector Specific Hazard X Level of intervention Higher Risk Medium Lower Risk Poor Compliance Record Increases Risk Risk Based Targeting Advice and Inspection

Management bans Forced closure of business Prosecution Sanctions Notices served Warnings given Business Advice and support Incentive schemes Deterrence measures Gradual escalation Cooperative measures Proportionate Risk Based Sanctions

Mutual understanding and tailored approaches ‘progressive partnerships’ Businesses as customers Better communication to reduce uncertainty and build business confidence Inter-agency working and recognition of investment in compliance to inform inspections Commercial awareness, ‘softer skills’ in training/CPD From the business end of the telescope - insights

Why are you here?

Rules vs Culture Rules set the standard, but culture amongst both businesses and regulators is crucial A judgment-based approach to regulation can achieve better outcomes than a box-ticking, rules-based approach

1. Context 2. Leadership – Vision, Awareness, Change 3. Competency 4. Performance Frameworks Elements of changing the regulatory culture