red tape challenge
Vince Cable announces cull of 'ridiculous' regulations
affecting the retail sector
29 July 2011
Yesterday the Business Secretary, Vince Cable, announced
proposals in relation to the first results from the Red Tape
Challenge. The Government plans to scrap or simplify around 160 out
of the 257 regulations reviewed in relation to retailers.
Many of the plans are quite specific to particular businesses
and/or have little impact on businesses as they are outdated or
used very little anyway. The following proposals have been
made:
- Removing the requirement to have an alcohol licence in order to
sell liqueur chocolates
- Lowering the age for buying harmless Christmas crackers from 16
to 12
- Removing rules relating to the safety of pencils, prams and
hood cords where consumers are protected by other legislation
- Removing various specific burdens identified by retailers
including:
- simplifying the procedures for age verification for the selling
of age-restricted goods
- simplifying the poisons licensing system for low risk products
such as fly spray or toilet cleaner
- removing the requirement to notify TV Licensing about TV
sales
- simplifying the rules on transport products such as tyres
Other proposals are merely to remove redundant legislation such
as the Trading with the Enemy Act and the 98 regulations linked to
it!
The Government also proposes to simplify consumer rights law by
replacing and simplifying over 12 pieces of legislation which it
says are overlapping, costly and confusing. These will be replaced
with a single piece of new legislation.
Going forward
How and when the above proposals will be put in place is
unclear. The legislative process can be a cumbersome one and it may
be a while before we see anything tangible come of these
proposals.
Whatever the position, it is important that firms are aware that
at this stage these are still only proposals and the law itself has
not yet changed. In many instances the removal of the legislation
may not remove the ultimate obligation on the retailer which will
remain in other existing legislation. This is especially so in
relation to safety which is covered by the overarching General
Product Safety Regulations. Similarly, in relation to consumer law
there is no indication that consumer rights will be reduced in any
way, but merely that the legislation will be simplified in terms of
its understanding and the bureaucracy involved. This could indeed
have the effect of encouraging more consumers to seek redress under
legislation if they find it easier to understand!
The challenge
The Red Tape Challenge, which began in April this year, is part
of the Government’s Growth Agenda and is aimed at simplifying and
reducing the 21,000 regulations affecting businesses, volunteers
and the public. The scheme is run through a website. Every few
weeks various regulations are published on the website relating to
a particular sector or industry. Anybody is able to access the
website and comment on any particular statutory instrument
identified for review. When the period for comments closes
Ministers have three months to decide which regulations to keep and
which to scrap, taking account of the comments provided. Areas
which have already been reviewed are retail, hospitality, food
& drink, road transportation, and equalities. Manufacturing is
currently under review.
The Government’s proposals in relation to other sectors are now
eagerly awaited, as is their response to the ongoing review of
“general regulations”. The current proposals are all relatively
minor and are unlikely to have any significant impact on the UK
trading environment. It will be particularly interesting to see how
the Government will deal with more significant regulatory
burdens.
To have your say and influence the regulations affecting you, go
to the Red
Tape Challenge website. Alternatively, for advice on any
regulatory issues please contact one of our team on the details
below.
The content of this bulletin is provided for the purposes of
general interest and information. It contains only brief summaries
of aspects of the subject matter and does not provide comprehensive
statements of the law. It does not constitute legal advice and does
not provide a substitute for it.