Striking the right balance between community protection and allowing business to get on with its job of creating wealth emerged as one of the key themes at a recent round table event in London, organised jointly by SOLACE and The MJ, discussing that other ‘R’ word, regulation. Dermott Calpin reports
Recession may dominate the economic headlines, but in the longer run, it may be that other important ‘R’ word, regulation, that continues to matter most for local authorities.
With communities still coming to terms with the impact of the credit crunch and economic downturn, the role of councils has come under ever-closer scrutiny, with a new emphasis on their effectiveness in ‘place shielding’ taking its place alongside the more established ‘place shaping’ agenda.
The Local Government Association, for its part, has already published a number of studies highlighting ways in which councils can work with local businesses to give extra support during the recession, while SOLACE has also produced its own guide for action at the local level.
For all the trillions promised at London’s recent G20 summit at a global level, for most people, it will be the way in which their communities weather the economic storm locally that matters most, and the effectiveness of the relationship between local businesses and councils that is most vital.
There are some 4.7 million small businesses in the UK, and with some 95% of them employing less than 20 people, they account for more than 58% of the private sector workforce, playing a crucial role in both the local and national economies. Councils oversee a number of regulatory services – from environmental health, food safety, trading standards and licensing to planning, building control and waste management – and how successfully they work with business has clear implications for the wellbeing of their communities.
This is one of the central issues addressed by Better local regulation: Supporting businesses in recession and beyond a draft guidance published by the Local better Regulation Office (LBRO) with an open invitation for comment from councils, business, consumer groups and national regulators. Established in the wake of a major review of the regulatory burdens on business carried out by Sir Philip Hampton, chairman of supermarket giant Sainsbury’s, LBRO’s five key founding principles of consistency, accountability, transparency, proportionality and targeting all underlie the draft guidance.
Initially set up in 2007 to help local authorities improve the way they enforce trading standards, environmental health, licensing and fire safety regulations, LBRO became a non-departmental public body with statutory powers on 1 October last year.
Its chair, Clive Grace, sees its role as both promoting prosperity and protecting local communities, and he is keen to ‘co-produce’ the final version of the guidance which is to be published ahead of the LGA annual conference in July which has the topical slogan ‘Big issues, local solutions’ with LBRO as one of the major sponsors.
‘Councils are already supporting a range of initiatives to help tackle the downturn in the economy – but there is more to be done,’ he has stressed at the launch of the consultation, adding: ‘In times like these, it is important that regulation protects vulnerable people and communities while also promoting prosperity.’
This question of striking a balance between community protection and allowing business to get on with its job of providing employment and creating wealth quickly emerged as one of the key themes at the recent London event, which is to be followed by similar forums in Birmingham and Manchester. While there is general acknowledgement that relations between councils and business are important, and have improved over recent years, it also became quickly clear that these can vary quite considerably in different parts of the country, and between different authorities. Whatever may be agreed at senior management or councillor level, in practice, many business leaders still believe the relationship is only ‘skin deep’, and that the burden of regulation is all-too-often an unfair and arbitrary process which adds costs.
Among many firms, there is still a suspicion that they are seen as a source of revenue for councils rather than a full partner, working for the overall benefit of the community. Meanwhile, many councils may be wary that the present economic climate will pressurise small businesses, in particular, to cut costs and lower standards. Where there is a major crisis, then there is general agreement on the need for effective and vigorous regulation and enforcement.
But at what point does the inspection of, say, local restaurants or fast-food outlets, become heavy-handed and risk-averse, rather than risk-aware, and where, in practice, do you draw the line in striking the balance between light-touch inspection and public safety, especially during recession? The question of trust is always a critical lodestone for the state of relations between council and business, but most people could agree on the value of better communications, greater consultation and closer everyday working relationships.
Canterbury City Council recently became the first local authority in the country to sign up to the FSB’s Small Business Engagement Accord, which sets out 14 general principles for closer co-operation and greater involvement of small businesses in local decision-making.
The accord has been welcomed for offering ‘win-win’ benefits for both local authorities and business, and it found widespread round table support, together with widespread endorsement for the virtues of Plain English guidelines on regulations and better training of enforcement staff.
Meanwhile, many councils are already hard at work with local initiatives to offer immediate and practical support, from suspending car parking charges in town centre areas, lobbying successfully for planned increases in business rates to be phased in gradually, setting up ‘one-stop shops’ specifically for business and establishing regional forums to bring together regulatory services in support of business.
Perhaps, most importantly, there was recognition that councils have a community remit which means the door should always be open for improvement.
With communities still coming to terms with the impact of the credit crunch and economic downturn, the role of councils has come under ever-closer scrutiny, with a new emphasis on their effectiveness in ‘place shielding’ taking its place alongside the more established ‘place shaping’ agenda.
The Local Government Association, for its part, has already published a number of studies highlighting ways in which councils can work with local businesses to give extra support during the recession, while SOLACE has also produced its own guide for action at the local level.
For all the trillions promised at London’s recent G20 summit at a global level, for most people, it will be the way in which their communities weather the economic storm locally that matters most, and the effectiveness of the relationship between local businesses and councils that is most vital.
There are some 4.7 million small businesses in the UK, and with some 95% of them employing less than 20 people, they account for more than 58% of the private sector workforce, playing a crucial role in both the local and national economies. Councils oversee a number of regulatory services – from environmental health, food safety, trading standards and licensing to planning, building control and waste management – and how successfully they work with business has clear implications for the wellbeing of their communities.
This is one of the central issues addressed by Better local regulation: Supporting businesses in recession and beyond a draft guidance published by the Local better Regulation Office (LBRO) with an open invitation for comment from councils, business, consumer groups and national regulators. Established in the wake of a major review of the regulatory burdens on business carried out by Sir Philip Hampton, chairman of supermarket giant Sainsbury’s, LBRO’s five key founding principles of consistency, accountability, transparency, proportionality and targeting all underlie the draft guidance.
Initially set up in 2007 to help local authorities improve the way they enforce trading standards, environmental health, licensing and fire safety regulations, LBRO became a non-departmental public body with statutory powers on 1 October last year.
Its chair, Clive Grace, sees its role as both promoting prosperity and protecting local communities, and he is keen to ‘co-produce’ the final version of the guidance which is to be published ahead of the LGA annual conference in July which has the topical slogan ‘Big issues, local solutions’ with LBRO as one of the major sponsors.
‘Councils are already supporting a range of initiatives to help tackle the downturn in the economy – but there is more to be done,’ he has stressed at the launch of the consultation, adding: ‘In times like these, it is important that regulation protects vulnerable people and communities while also promoting prosperity.’
This question of striking a balance between community protection and allowing business to get on with its job of providing employment and creating wealth quickly emerged as one of the key themes at the recent London event, which is to be followed by similar forums in Birmingham and Manchester. While there is general acknowledgement that relations between councils and business are important, and have improved over recent years, it also became quickly clear that these can vary quite considerably in different parts of the country, and between different authorities. Whatever may be agreed at senior management or councillor level, in practice, many business leaders still believe the relationship is only ‘skin deep’, and that the burden of regulation is all-too-often an unfair and arbitrary process which adds costs.
Among many firms, there is still a suspicion that they are seen as a source of revenue for councils rather than a full partner, working for the overall benefit of the community. Meanwhile, many councils may be wary that the present economic climate will pressurise small businesses, in particular, to cut costs and lower standards. Where there is a major crisis, then there is general agreement on the need for effective and vigorous regulation and enforcement.
But at what point does the inspection of, say, local restaurants or fast-food outlets, become heavy-handed and risk-averse, rather than risk-aware, and where, in practice, do you draw the line in striking the balance between light-touch inspection and public safety, especially during recession? The question of trust is always a critical lodestone for the state of relations between council and business, but most people could agree on the value of better communications, greater consultation and closer everyday working relationships.
Canterbury City Council recently became the first local authority in the country to sign up to the FSB’s Small Business Engagement Accord, which sets out 14 general principles for closer co-operation and greater involvement of small businesses in local decision-making.
The accord has been welcomed for offering ‘win-win’ benefits for both local authorities and business, and it found widespread round table support, together with widespread endorsement for the virtues of Plain English guidelines on regulations and better training of enforcement staff.
Meanwhile, many councils are already hard at work with local initiatives to offer immediate and practical support, from suspending car parking charges in town centre areas, lobbying successfully for planned increases in business rates to be phased in gradually, setting up ‘one-stop shops’ specifically for business and establishing regional forums to bring together regulatory services in support of business.
Perhaps, most importantly, there was recognition that councils have a community remit which means the door should always be open for improvement.
