Regulatory Reform – Lessons from the British BRE

The past few years have shown incredible convergence in how many governments implement regulatory reforms. Just between June 2007 and June 2008, 113 economies introduced 239 reforms as recorded by Doing Business, the most recorded in a single year since the project started.

On February 24, I attended a regulatory reform session of the Financial and Private Sector Development Forum 2009, in which Jitinder Kohli, Chief Executive of Better Regulation Executive (BRE), shared with us his experience as BRE leads the regulatory reform agenda across the British government.

In his view, business does not prefer regulatory changes. While reducing administrative burdens matters, it is critical to address the flow of regulation. To achieve that, when policy-makers propose a new regulation, BRE works closely with them to assess all the options, both regulatory and non-regulatory, and determine whether the benefits justify the costs. In this way, it improves the quality of advice given to Ministers and encourages informed public debate.

Upon the approval of new regulations, BRE continues to make them simple for business to understand. Common Commencement Dates (CCDs) is one of the ways to keep business abreast of regulatory developments. It is a statement of forthcoming regulations that helps business to prepare for the impact of new or changed legislation. CCDs are announced on two dates a year only – 6 April and 1 October, which provides clarity and stability for business. In addition, e-mail alerts can be sent directly to business, notifying them of regulation changes.