Measuring admin burdens, UK outcomes and next steps

1. Measuring admin burdens, UK outcomes and next steps Mark Hammond

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Measurement results

11. Burdens by department

12. Comparison of GDP shares

13. Origin of admin burden

14. Biggest information obligations

15. Type of information obligation

16. The next challenge… • Measure new regulations • Identify further simplification measures

17. 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

18. Distribution of administrative burden

19. 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

20. 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

21. 2007 Admin Burden Total Departmental reporting Modelling Validation Admin Burdens Database Admin Burdens Calculator IAs Admin Burdens Database Excel Spreadsheet Excel Spreadsheet Admin Burdens Database Process

22. 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

23. Reductions identified in initial plans

24. Reductions identified against targets

25. 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.

26. 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.

27. 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.

28. Any questions? Mark Hammond Better Regulation Executive, Cabinet Office 22 Whitehall London, SW1A 2WH Mark.Hammond@cabinet-office.x.gsi.gov.uk +44 20 7276 1745

29. 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-burdens.pdf