Agency announces savings from better regulation

Wednesday 10 December 2008

Since 2005 annual savings of £379 million have been delivered to businesses, the public sector and third sector by the Food Standards Agency. Details are in the Agency’s 2008/09 Simplification Report and Plan, published today. The savings include £44 million achieved through reductions in administrative burdens.

The report shows further progress towards the FSA's aim of minimising unnecessary bureaucracy and costs while maintaining and improving public health protection and consumer interests in relation to food and drink. This is the Agency's third report on its rolling simplification programme, and the case studies from stakeholders demonstrate how much real impact the initiatives are having.

The reduction of administrative burdens has been a major focus of the Government's better regulation programme. The Agency has a challenging target to reduce administrative burdens by £136 million by May 2010. More proportionate traceability guidance and the Safer Food Better Business initiative have contributed significantly to savings made so far and will continue to deliver savings over the next two years.

The report also outlines many non-financial benefits passed on to businesses and consumers through improved regulations, with much being done by the Agency to help smaller businesses in particular. The introduction of a Food Safety Management Diary for meat producers has received positive feedback from the industry and flexibilities negotiated by the Agency in the European Union food hygiene legislation, by introducing exemptions for small slaughterhouses, will result in estimated annual savings of up to £200,000. These flexibilities come into force in early 2009.

Other stakeholders also benefit. The plan includes details of the Agency’s work on reducing the burden for the wider public sector and third sector. For example, through the continued development of the GRAIL (Guidance and Regulatory Advice on Import Legislation) database on import legislation for port health authorities and local authorities. Also described are the Agency’s efforts during the European Commission’s review of EU food labelling, to keep hold of exemptions for the third sector.

In the plan, stakeholders are encouraged to submit better evidence where possible to help the Agency deliver its ambitious simplification programme and take forward simplification in Europe. With more than 90% of the UK's food law originating from Brussels, this is essential in order for the Agency to produce meaningful impact assessments to influence the European Commission.

Tim Smith, Chief Executive of the Food Standards Agency, said: 'We’ve made good progress so far in reducing admin burdens by £44 million. We know from experience that when we simplify the rules, it is easier for businesses to comply and consumer protection increases as a result.

'However, with nearly all food legislation originating in Brussels, reducing these burdens can be a lengthy process. While we are grateful for the contributions and interest received from stakeholders on this issue, more effective engagement with all stakeholders is vital if we are to deliver our ambitious simplification programme.'