Cabinet Office
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D-day for Rogue Traders
Government creates a fairer environment for honest businesses, widespread support offered by business community.
The Government today made a package of announcements that will free up honest businesses from red tape and crack down on the rogue businesses that undermine those who play by the rules.
Today marks a clear step forward by the Government to focus on providing trusted information and advice on how to stick within the rules, while stepping back from unnecessary involvement in the affairs of the overwhelming majority of businesses.
The package involves no new paperwork or hassle for business and includes:
* The appointment of Graham Russell as Chief Executive and seven board members to the new Local Better Regulation Office (LBRO). LBRO will support local authorities to make regulation simpler and more effective and will be fully operational by the Autumn.
* The beginning of a consultation on a draft Bill proposing:
* more consistency in local authority regulation and enforcement;
* that regulators be given additional flexible and proportionate powers to tackle those businesses who put people or the environment at risk and undercut the majority of law-abiding businesses, and;
* Consultation on a draft statutory code of practice for regulators. This will encourage regulators to focus enforcement effort on businesses most likely to cause harm, whilst improving advice and reducing unnecessary burdens for honest businesses.
William Sargent, the businessman brought in by the Government to implement better regulation, declared his support for the efforts today: 'This is a matter of basic fairness for honest hard-working businesses. Most play by the rules of our society and deserve our support and trust in getting ahead. We want local authorities and regulators to smooth their way. We are also sending the message that if you don't play by the rules - we are obtaining the powers to pull you into line.'
The package has received widespread support from across the business community.
John Walker, National Policy Chairman of the Federation of Small Businesses, said: 'Ensuring a clear and consistently fair system across all local authorities is a 'must have' for the small business sector. Adding on the anticipated reduction in costs to businesses means that this is a positive development and we welcome the creation of this new body.'
Sally Low, Director of Policy & External Affairs at the British Chambers of Commerce added: 'We welcome these proposals as a means to take forward the Government's commitment to ensuring a lighter touch on compliant businesses, but be tougher on rogue traders'.
Hilary Armstrong, the Cabinet Office Minister responsible for the Regulatory Enforcement and Sanctions Bill and draft Compliance Code confirmed the government was intent on pursuing a targeted approach to regulation enforcement. She said: 'We have listened to businesses and acted. We will focus on the highest risk businesses, and do whatever we can to make life easier for honest businesses.'
Notes for editors
1. Full details what the Government is doing to free honest businesses from red tape is available at: http://www.cabinetoffice.gov.uk/regulation
2. Graham Russell and the following board members join recently appointed Chair Clive Grace on the Local Better Regulation Office. The new board members are:
A) Robin Dahlberg (Security Industry Authority)
B) Uday Dholakia (Senior Partner, Global Consulting)
C) Michael Gibson CBE (Managing Director, Cantray Estates)
D) Ann Hemmingway (Dept for Transport Board)
E) Robert Leak (Chief Executive, London Borough of Enfield)
F) Rebecca Marsh (Independent Police Complaints Commission)
G) David Thurston (previously CBI and Sainsburys)
3. The draft Regulatory, Enforcement and Sanctions (RES) Bill was laid before Parliament today for a three month consultation. The bill is available at The bill is available at http://www.official-documents.gov.uk/document/cm70/7083/7083.pdf It will require more consistency in local authority regulation and enable regulators to punish non compliance in a flexible and proportionate way.
4. The new statutory code of practice for regulators sets out a number of principles for regulators to follow, encouraging them to take a proportionate and risk-based approach to the enforcement of regulation. The Code aims to enhance the efficiency and effectiveness of regulators, whilst increasing accountability and transparency. The code is in line with the principles set out in the Hampton Report "Reducing administrative burdens: effective inspection and enforcement", Philip Hampton, March 2005. Subject to the outcome of the consultation, a draft order will be laid before parliament, setting out the scope of the code, in terms of the regulators and regulations it covers. The code should then come into force in April 2008.
5. The Local Better Regulation Office (LBRO), which would be put on a statutory footing by the RES Bill, if passed, has now formally been set up as a company limited by guarantee. Hilary Armstrong, Chancellor of the Duchy of Lancaster, today announced the appointment of Graham Russell as Chief Executive of the LBRO and seven Board members. The Government has already announced that Clive Grace will be the first Chair of the Local Better Regulation Office.
Cabinet Office Press Office 22 Whitehall LONDON SW1A 2WH
