Council regulations ‘as big a burden’ as tax, say businesses

2 October 2008

The rules and regulations enforced by local authorities can have an even greater effect on businesses than tax and national employment law, a new poll has found.

The survey of a thousand businesses, carried out by MORI on behalf of the newly launched Local Better Regulation Office (LBRO), revealed concerns about the way that local regulations are managed and implemented.

There were worries about consistency of advice, consultation and understanding of business needs.

According to the survey, 71 per cent of respondents said they considered that regulations imposed by local councils are as big a burden as taxes and employment law, if not a bigger burden.

Of those firms that trade across three or more council boundaries, one in three said that they had received inconsistent compliance advice from different local authorities.

Some 90 per cent of businesses reported that 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.

On the up side, however, 65 per cent of businesses claimed that they were generally satisfied with the regulatory services provided by local councils.

The LBRO has been set up to help local authorities improve their regulatory services. The task of the LBRO is to reduce the administrative regulatory burden on businesses and to improve protection for consumers, workers and the environment.

The new body 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.

Commenting on the survey, Clive Grace, the LBRO’s chair, said: “It 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.”

Mr Grace added: “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, commented: “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.”