1. Hampton Implementation Reviews in the UK OECD Conference June 2011 Julie Monk julie.monk@bre.gsi.gov.uk

2.  Context  Framework  Implementation  Outcomes  Lessons Learnt Outline

3. Context Complex regulatory landscape in the UK:  31 National Regulators,  469 Local Authorities: Unitaries, Counties & Districts,  Over 60 non economic regulators,  Over 5000 inspectors.

4. Context Deal with the culture and practices of regulators so that they are in line with Better Regulation principles:  Proportionate,  Accountable,  Consistent,  Transparent,  Targeted.

5. Sir Philip Hampton was at the time Chairman of Sainsbury's supermarkets in 2004 and is now Chairman of the Royal Bank of Scotland. His report: Reducing administrative burdens: effective inspection and enforcement’ was published in March 2005.  He found that risk assessment was not implemented as thoroughly as it should be.  “Risk assessment should be comprehensive and should be the basis for all regulators’ enforcement programmes.”  Only 36 out of 63 national regulators using risk assessment. Context

6. Key recommendations were:-  The burden of enforcement should fall most on high- risk businesses.  Better focussed inspection activity – no inspection without a reason.  Much more use of advice.  But apply tough and more consistent penalties where these are deserved.

7. Framework Established in the Hampton Report 2005 and comprised the 7 Hampton Enforcement principles summarised below: (10 in total but 2 relate to how regulators should be set up). Regulators should use comprehensive risk assessment. Regulators should be accountable for the efficiency and effectiveness of their activities whilst remaining independent. Business should not have to give unnecessary information nor give the same piece of information twice.

8. Framework The few businesses that persistently break regulations should be identified quickly and face proportionate and meaningful sanctions. Regulators should provide authoritative, accessible advice easily and cheaply. No inspection should take place without a reason Regulators should recognise that they should encourage economic progress and only intervene when there is a clear case for protection.

9. Framework Placed on a statutory footing via the compliance code for regulators. Regulators assessed against principles more broadly through a Hampton Review.

10. Implementation Reviews of all regulators within the scope of Hampton (36 in total). A small review team of peers from other regulators and the National Audit Office (who scrutinise government to ensure it is value for money). Examine whether regulators work in accordance with Hampton Enforcement principles including: Operate a risk-based approach; Are transparent and accountable; and encourage economic progress.

11. Implementation  Gathering evidence and interviewing stakeholders.  Evidence included on site interviews with key staff, off site interviews with businesses and Trade Associations, examining websites, board reports, corporate and business plans, advice and guidance.  5 days for large regulators 3 days for small regulators.  Published reports reflect the judgements of review teams.

12. Outcomes 36 National Regulators reviewed and held to account by a transparent process and recommendations published on the BRE website. Regulators good practice network established to showcase good practice and undertake workshops to tackle common challenges eg a good risk based approach.

13. Outcomes Some regulators better than others can learn from each other on good practice. Common themes that emerged included:- Need to shift to more outcome focussed approaches and less output orientated. Advice and guidance could be improved by having an overall strategy. Not all models (for example for inspections) are properly risk based.

14. Lessons Learnt Regulators have improved as a result of the process. Administration can be quite time consuming need a dedicated resource to take this forward. Peer review is a powerful way of learning from one another and for supporting improvement. To change the culture of the regulator there has to be a high level of ambition and commitment from the top.

15. Further information Hampton Report: http://www.hmtreasury.gov.uk/d/bud05hamptonv1.pdfhttp://www.hmtreasury.gov.uk/d/bud05hamptonv1.pdf Hampton Implementation Reviews: http://www.berr.gov.uk/whatwedo/bre/inspection-enforcement/implementing- principles/reviewing-regulators/page44054.html http://www.berr.gov.uk/whatwedo/bre/inspection-enforcement/implementing- principles/reviewing-regulators/page44054.html Compliance Code: http://www.berr.gov.uk/files/file45019.pdfhttp://www.berr.gov.uk/files/file45019.pdf Regulatory Enforcement & Sanctions Act: http://www.opsi.gov.uk/acts/acts2008/pdf/ukpga_20080013_en.pdf http://www.berr.gov.uk/files/file47135.pdf http://www.opsi.gov.uk/acts/acts2008/pdf/ukpga_20080013_en.pdf http://www.berr.gov.uk/files/file47135.pdf