1. Letter and memorandum from Sir
Brian Bender, Permanent Secretary, Department for Business Enterprise
and Regulatory Reform (BERR)
MEMORANDUM FOR
THE PUBLIC
ACCOUNTS COMMITTEE
HEARING ON
20 FEBRUARY: THE
DELIVERY OF
THE ADMINISTRATIVE
BURDENS REDUCTION
PROGRAMME
In advance of the hearing before the Public
Accounts Committee on 20 February 2008, I thought it might be
helpful to draw the Committee's attention to the attached memorandum,
which updates the Committee on the progress that has been made
since the publication of the Report on "The Delivery of the
Administrative Burdens Reduction Programme" in December 2006.
6 February 2008
PROGRESS IN
REDUCING ADMINISTRATIVE
BURDENS
The NAO's report reviews the first year of the
Administrative Burden Reductions Programme and the first Departmental
Simplification Plans published in December 2006. Since that time
significant progress has been made.
In December 2007, 19 Simplification Plans were
published,[4]
showing more than 700 initiatives to reduce administrative burdens,
policy savings and regulatory irritants (over 280 of these measures
have already been delivered). Across Government, net savings in
annual administrative burdens of £3.5 billion by 2010 have
been identified (this is 26% of the May 2005 baseline of £13.4
billion). Of this, over £800 million of net annual administrative
burden savings have already been delivered.
The table below updates the progress made by
departments that were featured in Box 13 of the NAO report, as
well as the overall position across Government, based on Simplification
Plans published in December 2007.
ADMINISTRATIVE BURDENS: PROGRESS BY INDIVIDUAL
DEPARTMENT AND AGENCIES
| Department | Baseline May 2005
| Identified Net reductions by 2010
| Net savings delivered |
| £m | £m
| % of baseline | £m
| % of baseline |
| Department for Business Enterprise and Regulatory Reform
| 4,188 | 1,049 | 25%
| 57 | 1% |
| Communities and Local Government | 2,487
| 685 | 28% | 220
| 9% |
| Health and Safety Executive | 2,038
| 455 | 22% | 62
| 3% |
| Cross-Government | 13,401 |
3,485 | 26% | 819 |
6% |
HM Revenue & Customs publishes updates on its progress
at each Budget. The figures below reflect those published in Budget
2007.
ADMINISTRATIVE BURDENS: PROGRESS BY INDIVIDUAL DEPARTMENT
AND AGENCIES
| Department | Baseline May 2005
| Targeted reduction by 2010-11
| Net savings delivered |
| £m | £m
| % of baseline | £m
| % of baseline |
| HM Revenue & Customs (Forms & Returns target of 10% reduction)
| 3,370 | 337 | 10%
| 130 | 4% |
| HM Revenue & Customs (Audits & Inspection target of 10% in three years and 15% in five years)
| 140 | 21 | 15%
| 43 | 31% |
Simplification plans also set out progress in addressing
burdens facing the public sector. In the Pre-Budget Report 2007,
the Government committed to a 30% reduction in the number of data
request made by central Government to the front-line.
2007 Simplification Plans have also outlined how Government
is addressing policy burdens associated with regulations. Policy
burdens are the costs inherent in meeting the aims of regulation.
This could be direct cash costs, such as installing a pollution
filter on a factory chimney as required by legislation, to indirect
costs, for instance through necessary changes in working practices.
SCRUTINY OF
SIMPLIFICATION PLANS
The Better Regulation Commission (BRC) played a role in the
external scrutiny of the first round of Simplification Plans in
2006. However, following the Machinery of Government changes at
the end of June 2007, the Prime Minister asked the BRC to consider
how best to manage public risk. The BRC therefore took the decision
not to scrutinise the second round of Simplification Plans in
2007.
The BRC's subsequent report, "Public Risk: The Next
Frontier for Better Regulation" identified improved public
risk as a prerequisite to delivering better regulation. The report
also identified the need to establish a new organisation to take
this work forward. This resulted in the disbanding of the BRC,
with the Prime Minister establishing the Risk and Regulation Advisory
Council (RRAC) on 16 January 2008, which will focus on public
risk.
The BRE will continue to support and challenge departments
to improve the regulatory environment in the UK, including on
the Administrative Burdens Reduction Programme. Departments will
continue to publish their annual Simplification Plans, enabling
external stakeholder assessment against regulatory performance.
The Government also values the NAO's scrutiny of this programme.
CONCLUSION
The Government is clear that despite the considerable progress
on regulatory reform, more still needs to be done, including meeting
our commitments to deliver a 25% reduction in administrative burdens.
The Government will continue, year-by-year, to review regulation
and to report transparently on its progress. And it is committed
to continuing to listen to business, charities, consumers and
frontline staff in the public sector, to understand their priorities
for regulatory reform.
The Government also believes that it is vital that impacts
of regulatory reform are communicated effectively to businesses
and other stakeholders so that they understand and take full advantage
of the benefits of them. This is an important priority for Government
in 2008 and beyond.
4
http://bre.berr.gov.uk/regulation/reform/simplifying/plans.asp Back
| 
