Measuring admin burdens, UK outcomes and next steps

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Measuring admin burdens, UK outcomes and next
steps

• Mark Hammond

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Introduction

• Measurement and simplification planning exercises
  between May 2005 and Dec 2006
• Simplification plans and measurement results
  published in December 2006
• Plans published for 19 departments
• Over 500 simplification measures and over 2bn
  (3bn) of savings identified

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Admin burden measurement context

• Well developed better regulation agenda but no
  specific focus on admin burdens
• BRTF report Less is More stated what gets
  measured gets done
• Published at same time as Hampton report
• Separate but parallel and consistent exercises
• Tax and customs
• Financial services
• Rest of government

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Key points about the Standard Cost Model

• Simple, pragmatic framework for measuring costs
• Indicative - not statistically representative
• Means to an end aim is reductions in burdens
• Provides consistent baseline for setting targets
• Rapidly growing international use, including EU
  and OECD, and effective SCM network

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Main measurement exercise context

• Politically driven timescales one year from
  start to finish
• 16 departments involved - centrally led
• Limited information at start number of
  regulations, populations, etc
• Business, charities and the voluntary sector
  covered

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Main measurement exercise approach

• Departments identified regulations summer 2005
• Central procurement exercise - PwC appointed
  September 2005
• Mobilisation and mapping (legal and process)
  September to November 2005
• Fieldwork between October 2005 and April 2006
• Departmental reports with measurement outcomes
  April to July 2006

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A sense of scale

• 20,000 Information Obligations measured
• Over 90 of baseline (by cost) measured by direct
  engagement with business
• Over 75 through engagement with small medium
  sized enterprises
• Over 8,500 interviews and over 200 expert panels
• At peak over 700 PwC people, over 300 in
  departments and up to 23 in BRE team

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Lessons learnt

• More time for preparatory work
• Better departmental buy-in from outset at top
  level
• More prioritisation and be realistic
• Strong project and resource planning
• Manage departments expectations of the extent of
  their involvement
• Allow time to sanity check numbers before they go
  anywhere
• Support of business stakeholders is essential

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Business as usual costs

• Pressure from departments and business to
  identify BAU costs
• HMRC measurement excluded BAU costs in line with
  NL tax department
• Methodology developed aim to be
• Credible, pragmatic and as open as possible
• Consistent across departments
• Approved by business stakeholders independent
  panel to review outcomes
• Net costs agreed
• Enables focus on delivering visible outcomes

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Measurement results
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Burdens by department
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Comparison of GDP shares
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Origin of admin burden
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Biggest information obligations
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Type of information obligation
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The next challenge

• Measure new regulations
• Identify further simplification measures

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Measuring new regulations - Overview

• Regulations introduced and simplification
  measures implemented between May 05 and May 07
• Evidence reported using Impact Assessments
• Need to be pragmatic and proportionate

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Distribution of administrative burden
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Measurement approaches

• High cost / high profile / high irritants
• Use approaches developed by PwC including
• Interviews with business (face-to-face or
  telephone)
• Expert Panels
• Low cost / low profile / low irritants
• Use Admin Burdens Calculator
• Identify similar regulations / obligations as a
  basis for modelling

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How we are helping departments

• Guidance
• Simplification Guidance checklist for
  departments
• Training
• Facilitated sessions for Better Regulation Units
  and economists
• On-line training for policy officials etc.
• Tools
• Admin Burdens Calculator
• Admin Burdens Database
• Spreadsheet

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Process
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Identify further simplification measures

• Also cover reductions in policy costs and public
  sector burdens
• Revised simplifications plans will focus on three
  main areas
• Whether simplifications measures that have been
  implemented delivered planned reductions
• Further quantification for simplification
  measures yet to be implemented
• New simplifications measures to meet reduction
  targets

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Reductions identified in initial plans
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Reductions identified against targets
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Key simplification measures

• Companies Act reforms savings of almost 150
  million.
• International Trade Single Window allows traders
  to lodge information with a single body to fulfil
  all import and export requirements Saving around
  60 million a year.
• Health and Safety Executive (HSE) committing to
  savings of over 300 million through making
  compliance easier without compromising safety.

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Planning reform

• Initiatives to deliver a simpler, faster and more
  efficient planning system will save 124 million.
• Submit a single national planning application
  electronically
• Judged against more consistent criteria
• Increasing certainty for those using the system.

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Retail enforcement pilots

• Establishing new ways of working between trading
  standards, environmental health, health and
  safety and fire authorities
• Resulting in up to 33 fewer inspections for
  compliant businesses
• Scheme will be rolled out to 70 new local
  authorities from 2007.

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Any questions?

• Mark Hammond
• Better Regulation Executive, Cabinet Office
• 22 Whitehall
• London, SW1A 2WH
• Mark.Hammond_at_cabinet-office.x.gsi.gov.uk
• 44 20 7276 1745

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Where you can find more information

• Portal www.betterregulation.gov.uk
• BRE site www.cabinetoffice.gov.uk/regulation
• International SCM Network site
  www.administrative-burdens.com
• HMRC report http//www.hmrc.gov.uk/news/admin-bu
  rdens.pdf