Departments continue to implement a wide range of initiatives within the Administrative Burdens Reduction Programme. In 2008 we found that the existence of a 25 per cent target was an important driver in incentivising departments to consider the burdens imposed by their regulations. Businesses are also reporting that individual aspects of complying with regulation have become less burdensome, indicating that departmental initiatives have delivered benefits. The strengthened validation arrangements this year have improved confidence that departments are testing the assumptions underlying their claimed reductions, although the estimated savings should still be treated with caution.
However, more broadly in 2009, as in 2008, very few businesses reported that complying with regulation had become easier or less time consuming than a year before, and around a third said that it had become worse. Businesses appear to recognise some non-quantifiable benefits of initiatives, such as improved levels of clarity around what they need to do to comply. But whilst business perceptions of how government regulates are generally more positive than 2007, our survey results shows no improvement between 2008 and 2009, and most businesses continue to question whether government understands business well enough to regulate, or consults well before doing so.
The limited improvement in overall business perceptions of regulation, despite the action reported by departments and the positive changes in perceptions on individual aspects of compliance, may show the effect of a continuing flow of new regulations affecting businesses that outweighs the impact of administrative burden reductions. But it may also demonstrate that the Administrative Burden Reduction Programme's approach of making a large number of incremental improvements is not enough to make a visible difference for businesses. If the government is to achieve a significant change in business perceptions, the Better Regulation Executive (BRE) and departments must therefore look to more strategic and structural reform. The BRE is seeking to achieve this through the wider regulatory reform agenda; the evidence from our survey shows that changing business perceptions remains a very significant challenge.