Slide number 1 Better Regulation Executive What can and should be measured? Improving measures of policy burdens through better Impact Assessment Making regulation work for everyone

Slide number 2 Simplification Plans Seek to remove unnecessary costs of regulation Cover admin, policy and public sector savings Policy savings account for around 20% of total savings identified by 2010

Slide number 3 Policy burdens calculated through RIAs Separating ‘one off’ from recurring admin and policy burdens helps focus on cost minimisation Benefits of RIA format: Established brand, high level of compliance, integrated into consultation, used to ensure accountability Current weaknesses: Rigour, embeddedness, data quality, transparency

Slide number 4 Improving Impact Analysis Revised template – key information summary pages Analytical sign off Shorter guidance supported by a tool kit

Slide number 5 But…. Regulation is heterogenous and aggregate measures challenging to interpret – can be misleading Some potential for standardisation in Impact Assessment calculations e.g. value of life, cost of carbon, discount rates, optimism bias… Limited evidence on the link between regulation and productivity, competitiveness Must not overlook the benefits derived from regulation when instituting change

Slide number 6 Additional Information DTI/BRE Conference: Evaluation of Regulation ‘Adding up the costs and benefits’

Slide number 7 Business Costs to include in IA Business Costs NOT to include in IA Economic Costs for Business From Regulation Broad Compliance Costs Financial costs (often transfers) KEY Route to Use of SCM for admin burdens baseline purposes Recurring Substantive Compliance (Policy) Costs One Off Transition Costs (Admin and/or Policy) Recurring Admin Costs * Use Standard Cost Model* Admin Burdens Business As Usual Costs