Research and analysis
Costs and benefits of new regulation
Updated 10 March 2016
© Crown copyright 2016
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Regulatory proposals are accompanied by an impact assessment (IA), which assesses and estimates the likely costs and benefits, as well as presenting the associated risks, of a regulatory proposal that has an impact on business, civil society organisations, the public sector or individuals. Following scrutiny of an IA, the RPC provides an opinion on the quality of analysis and evidence presented in the IA. This opinion then informs the decisions of ministers as to whether or not they should proceed with the proposal.
As part of the scrutiny of an IA, the RPC validates the direct costs and benefits to business as set out in the IA. This is in line with the statutory duties established by the Small Business, Enterprise and Employment Act 2015. As the independent verification body the RPC is required to confirm the Government’s assessment of which costs and benefits will score towards the Government’s business impact target (qualifying regulatory provisions) and which are excluded from the business impact target (non-qualifying regulatory provisions). These figures are validated to the nearest £0.1 million. Further information on the exclusions was presented to parliament on 3rd March 2016. For the purposes of the business impact target (BIT) the equivalent annual net direct cost to business (EANDCB) is multiplied by the number of years the proposal is in force, or five years (to reflect the length of a fixed term parliament), whichever is longer. The Government, not the RPC, are responsible for establishing the BIT reporting rules.
Guidance on the issues the RPC considers when scrutinising an IA can be found here.
An opinion which includes significant concerns would result in the IA being red-rated as ‘not fit for purpose’. Where the RPC identifies significant concerns with an IA, but these concerns are addressed adequately by the department following a review notice, this is recorded on the relevant opinion. In some cases a further submission is required to resolve sufficiently the issues and concerns raised.
1. Cabinet Office
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Charity Commission powers and trustee disqualification* | Green | 0.5 | - | 2.5 | May 2015 to May 2016 |
| EU Procurement Directive on Utilities Contracts | Green | - | 0.1 | - | May 2015 to May 2016 |
| EU Procurement Directive on Concession Contracts | Green | - | 0.3 | - | May 2015 to May 2016 |
2. Department for Business, Innovation and Skills
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Continuity of essential supplies to insolvent businesses | Green | -38.3 | - | -191.5 | May 2015 to May 2016 |
| Consumer Rights Act: Consumer Law Enforcement Powers | Green | -5.9 | - | -29.5 | May 2015 to May 2016 |
| Reforms to the process by which SoS and official receivers requires information on director behaviour | Green | -4.0 | - | -20.0 | May 2015 to May 2016 |
| Insolvency Red Tape Challenge Package (April 15 measures)* | Green | -2.9 | - | -14.5 | May 2015 to May 2016 |
| Technical changes to IP regulations and the appointment of an administrator* | Green | -2.5 | - | -12.5 | May 2015 to May 2016 |
| Amendment to Outer Space Act 1986 (introduce upper limit on liability of licenced UK space operators. | Green | -1.6 | - | -8.0 | May 2015 to May 2016 |
| Changes to the Conduct Regulations | Green | -0.9 | - | -4.5 | May 2015 to May 2016 |
| Notices of auditors leaving office - simplification for companies and auditor | Green | -0.7 | - | -3.5 | May 2015 to May 2016 |
| Employment Tribunal Postponement Procedures | Green | -0.4 | - | -2.0 | May 2015 to May 2016 |
| The Competition Appeal Tribunal (CAT) Rules 2015 | Red/Green | -0.2 | - | -1.0 | May 2015 to May 2016 |
| Clarifying the process for the appointment of an administrator by a company or director | Green | -0.2 | - | -1.0 | May 2015 to May 2016 |
| Removal of the SoS from Competent Authority provisions in Insolvency | Green | -0.1 | - | -0.5 | May 2015 to May 2016 |
| Reform to the process by which the SoS and Official Receiver request information on directors’ behaviour | Green | -0.1 | - | -0.5 | May 2015 to May 2016 |
| Revision of Statement of Practice 16 in light of changes to pre-pack administration | Red/Green | -0.1 | - | -0.5 | May 2015 to May 2016 |
| Remake of the Accounting standards (Prescribed Bodies) (United States of America and Japan) Regulations 2012 | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Company filing requirements for corporate entities other than companies | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Consumer Rights Bill: Unfair Contract Terms | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Consumer Rights Act: Private Actions and the CMA Redress power | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Public Transport Ticketing Schemes Block Exemption | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Partial IP authorisation | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Change in the approach to the submission of due diligence submissions under the EU Timber Regulation | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Updated guidance in relation to the Restriction of the Use of Certain Hazardous Substances (RoHS) Directive | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Change in the approach to business improvement plans under the Waste Electrical and Electronic Equipment recycling (WEEE) & Battery Take-back Regulations | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Company registration: director disputes procedure | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Providing a route for redress for individuals on zero hours contracts who suffer detriment due to taking a second job | Green | 0.1 | - | 0.5 | May 2015 to May 2016 |
| Enabling Liquidators and Administrators to assign to third parties certain rights of action that only they can bring under the Insolvency Act 1986 and to extend the right to bring fraudulent and wrongful trading actions to an administrator. | Green | 0.1 | - | 0.5 | May 2015 to May 2016 |
| Amendment to Employment Tribunal Act 1996 | Green | 0.1 | - | 0.5 | May 2015 to May 2016 |
| Procedure for resolving disputes about the registered offices that companies state on the public register of companies | Green | 0.2 | - | 1.0 | May 2015 to May 2016 |
| Insolvency practitioner regulatory regime | Green | 0.2 | - | 1.0 | May 2015 to May 2016 |
| Consumer Rights Act: Digital Content | Green | 0.4 | - | 2.0 | May 2015 to May 2016 |
| Insolvency Practitioner Fees upfront estimates | Green | 0.6 | - | 3.0 | May 2015 to May 2016 |
| Requirement for higher education providers to subscribe to the Office of the Independent Adjudicator for Higher Education | Green | 0.6 | - | 3.0 | May 2015 to May 2016 |
| Consumer Rights Bill: Services | Green | 0.8 | - | 4.0 | May 2015 to May 2016 |
| Reforms to DROs and increase to creditor to creditor petition debt limits | Green | 1.0 | - | 5.0 | May 2015 to May 2016 |
| Consumer Rights Act: Goods | Green | 2.8 | - | 14.0 | May 2015 to May 2016 |
| Pubs Statutory Code and Adjudicator | Green | 3.4 | - | 17.0 | May 2015 to May 2016 |
| *Increases in national minimum wage rates – 2015 | Green | 38.8 | 626.0 | 38.8 | May 2015 to May 2016 |
| PSC register - protection regime | Green | - | 4.7 | - | May 2015 to May 2016 |
| PSC register - fees | Green | - | 10.0 | - | May 2015 to May 2016 |
| Collective management of copyright and related rights and multi-territorial licensing of rights in musical works for online use in the internal market | Green | - | 0.4 | - | May 2015 to May 2016 |
| Amendment to the National Minimum Wage Regulations 2015 - introducing a national living wage | Red/Green | - | 821.0 | - | May 2015 to May 2016 |
| Increased NMW financial penalty calculation – 2016 | Green | - | 0.0 | - | May 2015 to May 2016 |
| Pyrotechnics Directive (NLF Directive) | Green | - | 0.7 | - | May 2015 to May 2016 |
| Trust and Transparency: Prohibition of Corporate Directors with exceptions and change to the application of directors duties to shadow directors | Green | - | 5.7 | - | May 2015 to May 2016 |
| Transparency and Trust: Abolition of Bearer share | Green | - | 0.1 | - | May 2015 to May 2016 |
| Transparency and Trust: People with Significant Control (PSC) register | Green | - | 108.7 | - | May 2015 to May 2016 |
| Cape Town Convention - repossession of aircraft from insolvent companies | Green | - | 0.0 | - | May 2015 to May 2016 |
| Alternative Dispute Resolution | Green | - | 12.2 | - | May 2015 to May 2016 |
| Pressure Equipment (amendment) regulations 2015 | Green | - | 0.2 | - | May 2015 to May 2016 |
| Bankruptcy and insolvency fees increase order 2015/16 | Green | - | - | - | May 2015 to May 2016 |
3. Department for Communities and Local Government
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| The Party Wall etc. Act 1996 (Electronic Communications) Order 2015 | Red/Green | -0.7 | - | -3.5 | May 2015 to May 2016 |
| Amendment to permitted development rights for drilling boreholes for petroleum exploration site investigation and monitoring | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Helping Home Businesses - Amendment to the Landlord and Tenant Act 1954 | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Serving of Section 21 Eviction Notices – Deregulation Act 2015 | Green | 0.6 | - | 3.0 | May 2015 to May 2016 |
| Permitted development rights for the change of use of offices, light industrial buildings and laundrettes | Red/Green | - | - | - | May 2015 to May 2016 |
4. Department of Culture, Media and Sport
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Extension to National and Local Analogue Radio Licences | Green | -1.0 | - | -5.0 | May 2015 to May 2016 |
| Incidental Non Commercial private Society, Work and Residents Lotteries: Lifting Restrictions | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
5. Department for Education
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Child Safety Register | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Registration of Social Work Providers | Green | - | - | - | May 2015 to May 2016 |
| The Education (Non-Maintained Special Schools) (England) Regulations 2015 | Green | - | - | - | May 2015 to May 2016 |
6. Department for Environment, Food and Rural Affairs
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Plastic Carrier Bags Charge | Green | -203.4 | - | -1017.0 | May 2015 to May 2016 |
| Introducing retail competition in the water sector* | Green | -12.3 | - | -61.5 | May 2015 to May 2016 |
| Amendments to the producer responsibility regime | Red/Green | -3.6 | - | -18.0 | May 2015 to May 2016 |
| The Hazardous Waste (England and Wales)(Amendment) Regulations 2016 | Green | -2.9 | - | -14.5 | May 2015 to May 2016 |
| Addition of Flood Defence Consents regime to the Environmental Permitting regime | Green | -1.4 | - | -7.0 | May 2015 to May 2016 |
| Review of approach to issuing animal test certificates for veterinary medicines | Green | -0.2 | - | -1.0 | May 2015 to May 2016 |
| The Agriculture (Model Clauses for Fixed Equipment) (England) Regulations 2015 | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| The Unauthorised Deposit of Waste (Fixed Penalties) Regulations 2016 | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Introduction of measures against the introduction of Epitrix on potatoes imported from Spain | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Update of statutory notification scheme in the Plant Health (England) Order 2015 to include imports of Prunus planting material | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| The Agriculture (Calculation of Value of Compensation) (Revocation)(england) Regulations 2015 | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| The Environmental Permitting (England and Wales) (Amendment) (No. 3) Regulations 2015 (Four Enforcement Activities related to Waste Crime) | Red/Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Porcine epidemic diarrhoea virus notifications | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Amendment to Part I Schedule 8 of the Agricultural Holdings Act 1986 as regards its application in England - End of Tenancy Compensation for Improvements | Green | 0.1 | - | 0.5 | May 2015 to May 2016 |
| Designation of the second tranche of Marine Conservation Zones | Green | 0.3 | - | 1.5 | May 2015 to May 2016 |
| Options to increase the chance of achieving Officially TB Free (OTF) status for the TB Low Risk Area | Green | 1.0 | - | 5.0 | May 2015 to May 2016 |
| Petrol vapour recovery - Environmental Permitting Regulations (England and Wales) (Amendment) (No. ?) Regulations 2015 | Green | - | 0.0 | - | May 2015 to May 2016 |
| Transitional National Plan | Green | - | 0.0 | - | May 2015 to May 2016 |
| Welfare of animals at time of killing (WATOK) | Green | - | 6.0 | - | May 2015 to May 2016 |
| Implementing the Nagoya Protocol on Access and Benefit Sharing (ABS) | Green | - | 0.0 | - | May 2015 to May 2016 |
| Private water storage and supply | Green | - | 0.4 | - | May 2015 to May 2016 |
7. Department for Transport
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Abolition of the Vehicle Identity Check | Red/Green | -4.8 | - | -24.0 | May 2015 to May 2016 |
| Merchant Shipping (Code of Safe Working Practices) (Amendments and Revocation) Regulations 2015 | Green | -0.1 | - | -0.5 | May 2015 to May 2016 |
| The Hovercraft Code | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| High Speed Offshore Service Craft | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| EU Regulation 165/2014 on tachographs | Green | - | 0.0 | - | May 2015 to May 2016 |
| The Train Driving Licences and certificates (Amendment) Regulations 2015 | Green | - | 0.0 | - | May 2015 to May 2016 |
| Merchant Shipping (standards of training, certificaiton and watchkeeping) and (alcohol) Regulations 2015 | Green | - | 7.4 | - | May 2015 to May 2016 |
| The Railways (Interoperability) (Amendment) Regulations 2015 | Red/Green | - | 0.0 | - | May 2015 to May 2016 |
8. Department for Work and Pensions
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| The Pensions Act 2014 Contributions Equivalent Premium Order 2016 | Red/Green | -35.3 | - | -70.6 | May 2015 to May 2016 |
| Amendments to the Occupational Pension Schemes (Requirement to Obtain Audited Accounts and a Statement from the Auditor) Regulations 1996 | Red/Green | -4.2 | - | -21.0 | May 2015 to May 2016 |
| Amendments to The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) Regulations 2015 that provide exceptions to the automatic enrolment employer duties | Green | -1.7 | - | -3.4 | May 2015 to May 2016 |
| Amendment to The Employers’ Duties (Implementation) Regulations 2010 | Green | -0.6 | - | -1.2 | May 2015 to May 2016 |
| A ‘risk warning’ provision for members of occupational pension (trust-based) schemes | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Amendment to Employers’ Duties (Registration and Compliance) Regulations 2010 | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Banning commission in occupational pension schemes used for automatic enrolment | Green | 1.1 | - | 5.5 | May 2015 to May 2016 |
| Abolition of short service refunds | Green | 17.4 | - | 87.0 | May 2015 to May 2016 |
9. Department of Energy and Climate Change
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Transfer of consenting powers for onshore wind generating stations to local authorities. | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Maximising Economic Recovery of Offshore UK Petroleum: Strategy | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Legislation to require energy suppliers to provide key personal information on consumer bills in a machine readable format* | Green | 1.5 | - | 7.5 | May 2015 to May 2016 |
| Define protected areas under section 4B of the Petroleum Act 1998 (fracking)* | Green | 2.7 | - | 13.5 | May 2015 to May 2016 |
10. Department of Health
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| General Dental Council (GDC) Case Examiner S60 Order | Green | -2.0 | - | -10.0 | May 2015 to May 2016 |
| Amendments to the Human Medicines Regulations 2012 to widen access to naloxone for use in an emergency | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Nicotine Inhaling Products | Green | 0.3 | - | 1.5 | May 2015 to May 2016 |
| Tobacco Products Directive (TPD) | Green | 0.6 | 15.8 | 3.0 | May 2015 to May 2016 |
| CQC Fee Raising Powers | Green | 3.0 | - | 15.0 | May 2015 to May 2016 |
| Standardised packaging of tobacco products | Green | 48.4 | - | 242.0 | May 2015 to May 2016 |
11. Health and Safety Executive
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Exemption from Section 3(2) of the Health and Safety at Work etc Act 1974 for self-employed persons whose work activities pose no risk of harm to others. | Green | -0.5 | - | -2.5 | May 2015 to May 2016 |
| The Offshore Installation (Offshore Safety Directive (Safety Case etc.) Regulations 2015 | Green | 0.0 | 22.5 | 0.0 | May 2015 to May 2016 |
| the transposition of the Seveso III Directive into UK Law through the COMAH Regulations 2015 | Green | 0.1 | 4.5 | 0.5 | May 2015 to May 2016 |
12. HM Treasury
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Removing buy-to-let broking from within the scope of credit broking | Green | -0.8 | - | -4.0 | May 2015 to May 2016 |
| Independent Complaints Commission | Green | 0.0 | - | 0.0 | May 2015 to May 2016 |
| Senior managers and certification regime: extension to foreign branches | Green | 6.9 | - | 34.5 | May 2015 to May 2016 |
| Transparency Directive | Green | - | 0.7 | - | May 2015 to May 2016 |
| Implementation of the European Long Term Investment Funds Regulation | Green | - | 0.0 | - | May 2015 to May 2016 |
| Interchange Fee Regulation | Green | - | 0.0 | - | May 2015 to May 2016 |
| Undertakings for Collective Investments in Transferable Securities Directive | Red/Green | - | 5.4 | - | May 2015 to May 2016 |
| Help to Match SMEs Rejected for Finance with Alternative Lenders | Green | - | 1.5 | - | May 2015 to May 2016 |
| SME Credit Data | Green | - | 1.6 | - | May 2015 to May 2016 |
13. Home Office
| Proposal | RPC opinion | EANCB (qualifying regulatory provision, £ million) | EANCB (non-qualifying regulatory provision, £ million) | BIT score | BIT reporting year |
| Alcohol licensing - Increase in Temporary Event Notice limit | Green | -0.9 | - | -4.5 | May 2015 to May 2016 |
| Late Night Refreshment - Reducing the burdens of the Licensing Act 2003 | Green | -0.4 | - | -2.0 | May 2015 to May 2016 |
| Modern Slavery Act - Transparency in Supply Chains | Green | 1.4 | - | 7.0 | May 2015 to May 2016 |
| Right to Rent Scheme (landlord checks) | Green | 5.6 | - | 28.0 | May 2015 to May 2016 |
| Creation of a general ban on new psychoactive substances in the UK | Green/Green | 25.7 | - | 128.5 | May 2015 to May 2016 |
Measures marked with * were initially scrutinised in the previous parliament but for which have been ‘rebased’ to ensure the estimated impacts of those measures are comparable with measures scrutinised in line with the new better regulation framework (by using consistent price and present value base years). As a result, some figures in published impact assessments and RPC opinions will differ from the figures presented here. The rebased values are used to inform the business impact target