1. The UK Deregulation agenda – Importance of risk management in design and delivery of regulation Gordon Maddan Programme Manager - Business

3. Outcomes – what regulation is for Make it easier to start up and run a business Improve the health of communities, and protect workers and the environment Support businesses to grow and create new jobs Promote fair competition Expand markets and trade by improving border controls

4. Can regulation support growth? Research suggests three ways that a better approach to regulation can aid growth- 1.Reducing costs for business E.g. costs of data returns 2.Improving confidence and control E.g. Primary Authority 3.Realising wider economic benefits E.g. The impact of horsemeat

5. Prosperity and Protection ‘Good’ regulation can support growth, as much as ‘poor’ regulation hinders it How regulation is delivered (enforcement) matters Key aspects of delivery include – Right level regulation-local/regional/national – Listening to the views of business – Businesses to be the ‘customers’ of regulation

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

7. Risk Based Regulation ‘Unless risk assessment is carried through into resource allocations and regulatory practice, it is wasted effort. Risk assessment needs to be comprehensive, and inform all aspects of the regulatory lifecycle from the selection and development of appropriate regulatory and policy instruments through to regulators’ work including data collection, inspection and prosecution’ Hampton Report, 2005

8. EU and Ministerial engagement Key: BRE lead BRDO lead RPC lead Departments lead The Regulatory Policy Cycle: respective roles of BRE, BRDO and RPC 1. Regulatory Policy 6. Evaluation 2. Problem Identification 3. Developing Options 5. Delivery Making Whitehall machine work Owning the IA process Providing a forum for business engagement Engagement with Behavioural Insights Team Encouraging dept ownership Alternatives to enforcement Simplifying regulatory delivery & PA Feedback from business & regulators Landscape/ sectoral review approach PIRs BRDO, BRE and RPC Advice on early testing of options Business input to Better Regulation Policy 4. Recommendations to Ministers 4. Recommendations to Ministers Assessment of IAs, policy options Policy advice on delivery considerations Engagement with regulators & business

9. Risks Outcomes Interventions

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

11. Higher Risk Medium Lower risk Risk profiling of businesses

12. Risk = Hazard x Likelihood Hazard – anything with the potential to cause harm Likelihood – likelihood of a hazard causing harm Harm – scale of adverse impact on individuals, the environment or other businesses Defining Risk

13. Risk assessment Identify the level of hazard – High – Upper medium – Lower medium – Low

14. Risk assessment Identify the likelihood of compliance – Very high – High – Medium – Low – Very Low

15. Risk assessment of individual businesses Identifying the likelihood of compliance – Business track record – Current level of compliance – Knowledge and commitment to compliance – Systems to manage risks Categories: Very high - High - Medium – Low – Very Low

16. Risk categories Very highHighMediumLowVery low High Lower Medium Upper Medium High Upper medium Lower Medium Upper Medium High Lower mediumLow Lower Medium Upper Medium Low Lower Medium Upper Medium Likelihood of compliance Level of hazard

17. Risk Based Targeting Advice and Inspection Policies and priority setting Education Specialist Intervention Generic Assessment TS FS Higher Risk Medium Lower Risk Earned Recognition Reduces Risk Poor Compliance Record Increases Risk Common Risk Framework Common Assessment of Likelihood of Compliance Sector Specific Hazard X Level of intervention

18. How Risk assessment is used in the UK Food Hygiene Premises rating system Exemption of small low risk premises from liability to Health and Safety Inspections Trading Standards intervention model EU Rapex product safety assessment used in the UK

19. BRDO Priorities 2015 Regulators’ Code – statutory code of practice for regulators setting out what is expected of them Growth Duty – statutory duty for regulators to have regard to growth as they undertake their duties Data Sharing – identifying ways for regulators to share data to support business compliance / reduce burdens Primary Authority – providing reliable advice to support businesses to comply – extend and simplify Competency for regulators – improving knowledge, skills, and attitude at the front line Improved business dialogue mechanisms – Expert panels, Better Business for all, Business Reference Panel

20. Regulators’ Code Sets out what businesses should expect from regulators: Regulators should support those they regulate to comply and grow Regulators should engage with those they regulate and hear their views Regulators should base their regulatory activities on risk Regulators should share information about compliance and risk Regulators should ensure clear information, guidance and advice is available Regulators should ensure that their approach to their regulatory activities is transparent

21. Growth duty To emphasise that growth is an important factor to be taken into account in all regulatory decisions Amending the legal framework to enable regulators to make improvements to the business experience of regulation and foster a regulatory environment conducive to compliant growth. Current Status Government Response to Consultation published Deregulation Bill Going through Parliament Guidance published

22. Primary Authority To drive consistency and reconnect businesses with the regulatory system Primary Authority allows businesses to form a statutory partnership with one local authority, which then provides robust and reliable advice which other councils have to take into account. Regulatory Enforcement and Sanctions Act 2007 The scheme enables businesses to benefit from clearer, assured advice and more consistent enforcement. Government has extended Primary Authority to (smaller) businesses where they share an approach to compliance. This includes franchises and trade associations. Enterprise and Regulatory Reform Act 2013 The scheme creates a joined up regulatory system that saves businesses time and money, improves public protection and consumer confidence.

23. Primary Authority 433 local authorities

24. Primary Authority Coordinated partnerships 33,500 ACS members

25. Key features of Primary Authority Legally entitled to rely on assured advice Enforced by block on enforcement action without consent of PA Determinations on correctness of advice / enforcement can be sought from BRDO BRDO role to agree suitability of partnerships Cost effective for both Businesses and Local Authorities – PA’s can recover costs

26. Participants in Primary Authority 6733 Businesses 7111 Partnerships 5588 Coordinated partnerships 85% Small or medium sized enterprises 155 Local Authorities

27. Competency Structure for regulators

28. Expert panels To bring together Government policy leads, regulatory experts from business and Local Authority enforcers to resolve issues of sectoral concern as they arise Food Standards and Labelling Food Hygiene Metrology Age Restricted Products and Housing Fire Safety Supermarkets Primary Authority Housing Leisure Fair Trading

29. Areas covered by ‘Better Business for All’ regulatory partnerships Aim to bring together business representatives and all regulators local and national operating in an areas to improve coordination and build business support and confidence

30. The UK Deregulation agenda – Importance of risk management in design and delivery of regulation Gordon Maddan Programme Manager - Business