Published: 06 October 2008
Burden of Council Regulations
A major new business survey found that 71% of businesses feel that council enforced regulations can be as big or a bigger burden than tax and employment law - setting out the challenge for the Local Better Regulation Office (LBRO) which marked its formal launch last week.
Other results from the independent survey - commissioned by LBRO from Ipsos MORI - of 1,000 companies in England and Wales, include:
- Of those firms trading across three or more council boundaries, one third said that they had received inconsistent compliance advice from different local authorities
- Most interviewed companies said they valued council support - three out of four businesses agreed that it is important for local authorities to provide an advisory service on trading standards, environmental health, licensing and fire safety regulations
- Nine out of 10 businesses said they had never been consulted by local authorities about the enforcement of trading laws covering key areas like consumer protection and health and safety
- One in 10 firms voiced the view that local regulators who contacted them did not know enough about their companies
- 65% said they were generally satisfied with the regulatory services provided by local councils
The survey clearly sets out the challenge facing LBRO when working with local authorities and businesses.
LBRO has now got statutory powers to support improvement in local regulatory services and is developing a number of projects to address business concerns.
Clive Grace, the LBRO Chair, said:
"The survey is the most comprehensive picture yet of the impact of local regulation on business.
It reveals how important local regulation is to UK plc and underlines the need to ensure that regulatory services work not just to protect consumers, workers and the environment, but also to support businesses in complying with regulations.
There is a clear message here from business that robust and reliable advice from local authorities is important, and that the regulated are looking for the regulators to provide more support.
We are an organisation that acts upon evidence and the survey gives us an invaluable insight as we start our formal role to lead the drive for better local regulation."
Matthew Fell, the CBI's Director of Company Affairs said:
"Businesses face regulatory burdens from all directions, but locally enforced regulations can be just as challenging as the big ticket issues such as employment and tax. Businesses recognise the value of effective, consistent regulatory advice.
The newly established Local Better Regulation Office has a key role to play in ensuring local authorities step up to the challenge of better regulation."
Kieran O'Keeffe, a senior policy adviser at the British Chambers of Commerce, said:
"This survey highlights the scale of the challenge that the Local Better Regulation Office faces. Businesses want to stay on the right side of the law, but to do this they need consistent and expert advice from local authorities.
We hope that the LBRO will be able to work with local authorities and businesses to ensure a better regulatory environment for our members".
LBRO has been set up to help local authorities improve their regulatory services - reducing regulatory burdens on law abiding businesses and improving protection for consumers, workers and the environment.
It will advise ministers on better local regulation and will be able to issue statutory guidance to local authorities on enforcing trading standards, environmental health, licensing and fire safety regulations.
Clive Grace continued:
"Our job is to lead the drive for better regulation at a local level.
We have significant statutory powers and will work closely with local authorities, national regulators and central government to make sure that local regulation is proportionate, targeted, accountable, consistent and transparent."
LBRO is responsible for running the new Primary Authority scheme, which hopefully will help reduce inconsistent advice across council boundaries. It is currently being piloted with several national retailers and councils in England.
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