CABINET OFFICE News
Release (CAB 036-07) issued by The Government News Network on 15 May 2007
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
http://www.cabinetoffice.gov.uk