1. Tackling costs in new and existing regulation- the UK way Sarah Mitchell James Rees

2. Tackling new regs Micros moratorium Tackling existing regs Red Tape Challenge Tackling new and existing regs One-in, one-out UK`s Regulatory Agenda

3. Micros Moratorium For three years All micros and new businesses included Scope - all new domestic regulation within the scope of OIOO plus certain categories of domestic regulation that are outside the scope of OIOO (e.g. systemic financial risk). Both regulatory measures and de-regulatory measures. Waivers - department must seek the agreement of both RRC and Economic Affairs Committee to a waiver as part of the normal clearance process; a waiver will be considered on a case by case basis.

4. Online public engagement Focused on tackling the c.21,000 strong stock of existing regulations Aim is to : 1.find out which regulations are good; 2.which impose excess burdens or unnecessary restrictions on freedom; and 3.get the public to propose solutions Asks the public: Red Tape Challenge ‘which regulations should be scrapped; done differently; simplified; improved in implementation; kept?’

5. Regulations included: every few weeks – spotlight on regulations affecting one specific sector or industry – from retail to hospitality to construction. throughout the process - general regulations that cross across all sectors – from rules on equality to those in employment. Anyone can comment on. Once a theme closes, Ministers have three months to work out which regulations they want to keep and why. But the default assumption is that burdensome regulations will go. If Ministers want to keep them, they have to make a very good case for them to stay. Red Tape Challenge

6. Regulations included: every few weeks – spotlight on regulations affecting one specific sector or industry – from retail to hospitality to construction. throughout the process - general regulations that cross across all sectors – from rules on equality to those in employment. Anyone can comment on. Once a theme closes, Ministers have three months to work out which regulations they want to keep and why. But the default assumption is that burdensome regulations will go. If Ministers want to keep them, they have to make a very good case for them to stay. Red Tape Challenge

7. Programme launched in April. The website has received over 20,000 comments. Retail theme: C. 9000 comments Ministers now considering scrapping <100 redundant retail regulations Ministers intend to revoke, consolidate or simplify c.80 more Red Tape Challenge

9. In 2010 the Coalition Government announced it would introduce ‘One-in, One-out’… Autumn 2010 the rule was introduced to: “We will cut red tape by introducing a ‘one- in, one-out’ rule whereby no new regulation is brought in without other regulation being cut by a greater amount.” One-in, One-out The Coalition: our programme for government HM Government bear down on the cost and volume of regulation achieve culture change across UK government

10. What is OIOO? One-in, One-out is a rule, whereby any new regulatory cost is, at least, matched by cuts to the cost of existing regulations What is the objective? Bear down on the costs to business of regulation, and Create culture change across Whitehall

11. Mechanism ‘IN’ Flow Regulatory priorities implemented cost-effectively = ‘OUT’ Stock Simplifications or deregulatory measures taken from existing stock Business costs only Net direct costs Domestic legislation For every new regulation imposing a net cost (IN), equivalent value repealed to compensate (OUT)…

12. OIOO Scope Who does it apply to? All Whitehall departments with immediate effect. Independent Regulators have been invited to participate; Initial Scope: –Domestic UK legislation which regulates business and civil society organisations (previously known as the third sector); –Exclusions: tax, emergencies and measures to address systemic risk; What about European regulations? –OUTs can be derived from repealed or recast of existing regulations –INs arise from gold-plating or failure to derogate

13. Sources of Regulation Statutory instruments Codes of practice & self-regulation backed by statutory force Guidance issued under statutory powers By-laws by central Government

14. What is Out-of-Scope? Regulations which do not impact on business or civil society organisations Tax & tax administration Civil emergencies Spending decisions Fines & penalties Specific Enforcement Actions Financial systemic risk

15. Scoring INs & OUTs INs The introduction or amendment of a regulation which will result in a direct net cost to business The removal of a regulation which will result in a direct net cost to business OUTs The removal of a regulation which will result in a direct net benefit or the recast of a regulation resulting in a reduced direct cost on business

16. Treatment of EU measures EU measures are in scope where the following occurs: –Goldplating –Failure to derogate International measures are treated in similar manner to EU measures

17. Reporting on OIOO Statement of New Regulation (SoNR) reports on: –Regulatory flow from Depts for upcoming 6 mts –OIOO Balance for each Dept. SoNR process as a lever for : –Strengthening departmental ownership : responsibility and accountability –Embedding key changes to regulatory system and culture across Whitehall (e.g. OUTs, RPC role) –Ensuring that Depts also have a grip on their longer term programmes (feeding in to separate RRC discussion)

18. £0m -£10m -£20m -£30m £10m £20m £30m £40m £50m £60m -£100m -£1,000m -£3,000m -£3,300m DfT BIS DWP Defra DH DECC HO/GEO HMTHSE DfE FoodSA

19. Second half: Workshop discussion

20. OIOO Currency OIOO is scored using Equivalent Annual Net Cost to Business There is no substantive difference between using the EANCB to score OIOO and using the present value of the direct net costs to business. the EANCB as it gives an indication to business of the likely annual impact as a result of the regulation being introduced. The net present value can be a very large number which can be misinterpreted, as it indicates the total net impact of the policy over its lifetime, rather than the likely annual costs that business will incur

21. Direct v Indirect Impacts Direct Impacts result directly from the implementation or removal/simplification of the regulation and include more than just direct expenditure. If the effect happens after something else happening first (as a result of the regulation) it is considered a second order effect or indirect impact. A regulation which imposes a restriction, or determines how an agent should act/operate e.g. Working Time Regulations, has a direct cost (the opportunity cost of doing something else/differently), although this may not necessarily be direct expenditure. This is not an economic concept but it allows OIOO to be operational without endless confusion.

22. Role of the RPC in scrutinising An independent, external body who provides external scrutiny for the IAs of all new regulatory proposals In order to gain clearance from Cabinet Committees Departments must obtain a Fit For Purpose IA from the RPC The RPC does not comment on Government policy objectives, but focuses on the options which have been considered for implementation and the robustness and quality of analysis