This guidance explains how the better regulation system should operate following the announcement of the government’s business impact target (BIT) for the current parliament on 20 June 2018. It is written for government departments, and replaces the Better Regulation Framework Manual, which may be referenced in other documents, and the Better Regulation Framework – Interim Guidance that was published on 22 February 2018.
The business impact target for this parliament reflects the government’s ambition to continue to bear down on the costs to business of regulation while maintaining important regulatory protections. See section 2.1 for details. The target has been set within the context of a more proportionate and efficient better regulation system which allows analytical effort and independent scrutiny to be focused on regulations with the greatest potential impact on business and civil society organisations. The guidance sets out further flexibilities for departments to decide how they comply with the better regulation principles of robust evidence, transparency and proportionality in their policy making cycles.
To this end, it also sets out a general threshold for independent scrutiny of Regulatory Impact Assessments (RIAs) and Post Implementation Reviews (PIRs) where the equivalent annual net direct cost to business (EANDCB) is greater than ±£5m. For measures below this threshold, departments should undertake proportionate cost-benefit analysis to inform decision-making, as well as demonstrating that the impact of a measure is below the ± £5m EANDCB threshold.
This guidance applies to measures implemented or due to be implemented following the 2017 General Election.