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New code to cut more red tape

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/075) issued by The Government News Network on 7 April 2008

The government introduced a new code of practice yesterday that will help save businesses time and money by improving the way regulators work with them.

The Regulators' Compliance Code is an important step in the government's ambitious programme to cut red tape.

It requires regulators to take a risk-based approach to inspection and enforcement. This means fewer inspections and less regulatory burden for the majority of compliant businesses, but more rigorous inspection when there is high risk of a business not complying with regulation.

Businesses can expect a cut in unnecessary inspections, form filling and information requests, as well as better advice on how to comply with the law. They can also expect more transparent, flexible and consistent enforcement.

Business and Competitiveness Minister Shriti Vadera said: "The government understands that regulation is one of the top concerns for business.
"The Compliance Code requires regulators to work better with business and ease the burdens placed on those who operate within the rules.

"Regulators must take a light-touch approach to companies who comply with the law and target enforcement only at those who benefit by flouting it."

"This is a vital step towards delivering on our promises to cut red tape."

National regulators like the Environment Agency and the Health and Safety Executive will have to take the Code into account when setting out how they conduct their work.

In England it also applies to local authority functions like trading standards, environmental health and licensing, as well as fire and rescue authorities.

Businesses can challenge regulators through Judicial Review if they do not follow the Code.

The Code is based on the findings of the Hampton Report that enforcement of regulation should be risk-based and that the existing voluntary arrangement was not working as well as expected.

Following this risk-based approach will also help regulators be more efficient and effective in their work as they target their resources at areas where there is most risk.

Businesses consulted on the Code were strongly in favour of this statutory approach to good practice in regulation, rather than a voluntary arrangement.

Notes to Editors

1. A number of key government departments issue all their changes in regulation twice a year on April 6th and October 1st. These are called Common Commencement Dates and were introduced to help business deal with regulatory changes at fixed predictable points in the year.

2. More than 400 organisations were consulted on the Code, including regulators, businesses and local authorities.

3. Examples of how individuals and businesses are benefiting from changes to regulation can be found on http://www.betterregulation.gov.uk. The site also invites suggestions for what else can be done to reduce red tape.

4. The Department for Business Enterprise and Regulatory Reform helps UK business succeed in an increasingly competitive world. It promotes business growth and a strong enterprise economy, leads the better regulation agenda and champions free and fair markets. It is the shareholder in a number of Government-owned assets and it works to secure, clean and competitively priced energy supplies

Department for Business, Enterprise & Regulatory Reform
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