New code to cut
more red tape
Sector: Central Government
Date Created: Mon 7th Apr 2008, 11:03:41
Source: BERR
Link: www.berr.gov.uk
UK - The government introduced a new code of practice 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. |
