In 2005, the Government commenced the Administrative Burdens Reduction Programme (the Programme), with the aim of reducing the cost of the administrative activities undertaken by business to demonstrate compliance with regulations. The Government's objective is to reduce the burden of administering regulations without jeopardising policy objectives.

The Programme originated in a report by the Better Regulation Task Force, which reviewed an equivalent exercise undertaken by the Dutch Government. The rationale was that businesses could redeploy resources previously used in complying with regulation to more productive activities which, in turn, would benefit the UK economy. The Better Regulation Task Force estimated that the Programme offered the potential for an estimated increase in GDP of £16 billion for an investment of £35 million.

The Better Regulation Executive, now part of the Department for Business, Enterprise and Regulatory Reform (the Department), co-ordinated the implementation of the Programme and led the work to measure the size of the burden on businesses.

The Better Regulation Executive estimated that complying with the administrative activities imposed on businesses by regulation costs businesses some £20 billion a year. Central Government departments and regulators are implementing the Programme and have published simplification plans detailing how reductions will be achieved. Her Majesty's Revenue and Customs (HMRC) has undertaken a separate but parallel exercise, and has drawn up an equivalent plan to achieve reductions.

Under the Programme, 18 departments and regulators have committed to reducing administrative burdens by 25% by 2010. In addition, HMRC has established its own targets: to reduce the cost to business of complying with tax forms by 10%, and of audit and inspection by 15%, by 2010-11.

On the basis of a Report by the Comptroller and Auditor General,[1] we examined how the Better Regulation Executive and departments had introduced the Programme, progress in delivering reductions in burdens, and the long-term results of the Programme.