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Business says burden of council regulations can be as big as tax or employment law
A major new business survey found that just over seven out of ten businesses (71 per cent) feel that council enforced regulations can be as big or a bigger burden than tax and employment law - setting out the challenge for the Local Better Regulation Office (LBRO) which marked its formal launch today.
Other results from the independent survey - commissioned by LBRO from Ipsos MORI - of 1,000 companies in England and Wales, include:
* Of those firms trading across three or more council boundaries, one third said that they had received inconsistent compliance advice from different local authorities.
* Most interviewed companies said they valued council support - three out of four businesses agreed that it is important for local authorities to provide an advisory service on trading standards, environmental health, licensing and fire safety regulations.
* Nine out of 10 businesses said they had never been consulted by local authorities about the enforcement of trading laws covering key areas like consumer protection and health and safety
* One in 10 firms voiced the view that local regulators who contacted them did not know enough about their companies
* Just under two thirds (65 per cent) said they were generally satisfied with the regulatory services provided by local councils.
The survey clearly sets out the challenge facing LBRO when working with local authorities and businesses. LBRO today gets statutory powers to support improvement in local regulatory services and is developing a number of projects to address business concerns.
Clive Grace, the LBRO Chair, said:
"The survey is the most comprehensive picture yet of the impact of local regulation on business.
"It reveals how important local regulation is to UK plc and underlines the need to ensure that regulatory services work not just to protect consumers, workers and the environment, but also to support businesses in complying with regulations.
"There is a clear message here from business that robust and reliable advice from local authorities is important, and that the regulated are looking for the regulators to provide more support. We are an organisation that acts upon evidence and the survey gives us an invaluable insight as we start our formal role to lead the drive for better local regulation."
Matthew Fell, the CBI's Director of Company Affairs said:
"Businesses face regulatory burdens from all directions, but locally enforced regulations can be just as challenging as the big ticket issues such as employment and tax. Businesses recognise the value of effective, consistent regulatory advice. The newly established Local Better Regulation Office has a key role to play in ensuring local authorities step up to the challenge of better regulation."
Kieran O'Keeffe, a senior policy adviser at the British Chambers of Commerce, said:
"This survey highlights the scale of the challenge that the Local Better Regulation Office faces. Businesses want to stay on the right side of the law, but to do this they need consistent and expert advice from local authorities. We hope that the LBRO will be able to work with local authorities and businesses to ensure a better regulatory environment for our members".
LBRO has been set up to help local authorities improve their regulatory services - reducing regulatory burdens on law abiding businesses and improving protection for consumers, workers and the environment.
It today gets statutory powers to drive reform of local regulation. It will advise ministers on better local regulation and will be able to issue statutory guidance to local authorities on enforcing trading standards, environmental health, licensing and fire safety regulations.
Clive Grace said:
"Our job is to lead the drive for better regulation at a local level. We have significant statutory powers and will work closely with local authorities, national regulators and central government to make sure that local regulation is proportionate, targeted, accountable, consistent and transparent."
LBRO is responsible for running the new Primary Authority scheme, which will help reduce inconsistent advice across council boundaries. It is currently being piloted with several national retailers and councils in England.
Notes to editors
1. Ipsos MORI interviewed 1,000 senior managers of England and Wales based companies, such as owners/partners, CEOs, Managing Directors, Finance Directors and other senior members of staff between 16 June and 18 July 2008. The interviews lasted for around 15 minutes and were conducted by telephone, using CATI (Computer Assisted Telephone Interviewing). The companies ranged from sole traders to those with hundreds of employees, and covered a wide range of sectors, including farming, construction, retail, property, the motor trade and tourism. A sample of business leads was bought from an approved Ipsos MORI supplier and interview quotas were set by industry sector and size of business to ensure a representative profile of companies was interviewed. A pilot to test the questionnaire, sampling and methodology of the survey was also conducted. The pilot consisted of 26 interviews conducted by telephone between 3 and 6 June 2008.
2. The Local Better Regulation Office (LBRO) helps local authorities improve their environmental health, trading standards, fire safety and licensing services - reducing burdens on businesses that comply with the law while targeting those who flout it. It was incorporated as a government-owned limited company in May 2007. Following the commencement of the Regulatory Enforcement and Sanctions Act 2008 on 1 October 2008, it now operates as an executive non-departmental public body, accountable to the Department of Business, Enterprise and Regulatory Reform through the Better Regulation Executive. LBRO is governed by an independent Board, has a staff of around 25 and is based in central Birmingham. It has a remit that covers the whole of the UK, and works closely with the devolved administrations to ensure our work in Wales, Scotland and Northern Ireland is appropriate to the unique constitutional position of each. For further information about LBRO please visit http://www.lbro.org.uk
Media enquiries to Karl Turner on 0121 226 4019
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