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Regulatory Enforcement and Sanctions Bill [Lords]

As I said, the Bill does not alter the fundamental relationship between UK law and European law. We recently debated the European treaty at length, and the Bill to enact it. During those proceedings, the relationship between European law and its jurisdiction and UK domestic law was also debated at length. The Bill does not alter the relationship, to which we signed up when we joined the European Union. As I said, we will consult on a new system of regulatory budgets, which will set out the cost of new regulation that can be introduced in a given period. We will also introduce a rolling limit on the annually recurring costs of new regulation. More immediately, the Bill will make important legislative changes to the UK system of regulatory enforcement. Part of the background is Sir Philip Hampton's report on administrative burdens, inspection and enforcement in 2005. It highlighted the difficulties that can follow from the inflexibility and inconsistency of the existing regulatory system. That is not acceptable, either for business or, indeed, for Government, and the Bill helps to address the issues raised by the report by ensuring a regulatory framework in which we regulate only when necessary, and in clear proportion to the risk, rationalise inspection and enforcement arrangements, and focus enforcement resources on businesses that deliberately or consistently flout their regulatory responsibilities. The Bill will help to strengthen regulatory compliance, maintain appropriate protections for the public, and reduce regulatory burdens for compliant organisations. Part 1 will create in statutory form an expert body—the local better regulation office— with a remit to improve the way in which Government, regulators, and local authorities work together to enforce regulations. Given the important regulatory role of local authorities, that is an important way of ensuring improvements.