Better Regulation Executive

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

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

4
Improving Impact Analysis

• Revised template key information summary pages
• Analytical sign off
• Shorter guidance supported by a tool kit

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

6
Additional Information

• DTI/BRE Conference Evaluation of Regulation
• Adding up the costs and benefits
• www.dti.gov.uk/about/economics-statistics/economic
  s-directorate/page35674.html

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