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
7th Floor, 1 Victoria Street, London SW1H 0ET
Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215
6740 (for those with hearing impairment)
http://www.berr.gov.uk