3 Measuring the Results of the Programme
26. In March 2008, the Government restated its
belief that reducing administrative burdens could increase GDP
by 0.9%.[55] The Government
referred to OECD research that suggests that the reform of regulation
of product markets is positively correlated with faster productivity
growth, with the strongest impact from reforming administrative
burdens. World Bank research also found a strong negative association
between regulation and growth. Academic literature is, however,
divided and there is an on-going debate on the strength of the
link. For example, a paper from the May 2006 Oxford Review of
Economic Policy highlighted that there was no conclusive evidence
on the correlation between the level of regulation and productivity
growth.[56]
27. Assessing the longer term objective of improved
productivity will be a challenging task, due to the difficulties
of such measurements and because there is no conclusive empirical
evidence linking regulation and productivity levels. In 2007,
BERR commissioned research to explore further the link between
regulation and productivity, and the impact on businesses' behaviour.[57]
28. The Government will measure progress towards
its 25% reduction target by calculating changes against the administrative
burdens baseline. Departments are responsible for delivering reductions,
calculating savings and measuring progress towards their own targets.
The Better Regulation Executive has released guidance that provides
a framework for departments to use when calculating reductions.
It also co-ordinates progress across departments and reports progress
against targets annually.[58]
29. The limitations of the original measurement
exercises mean that the claimed reductions in administrative burdens
should be treated with caution and the baseline costs are approximate
figures rather than accurate calculations.[59]
However, the targets can help to focus and incentivise departments
and hold them to account for delivery.[60]
55 Q 11 Back
56
C&AG's Report, para 1.5 Back
57
Q11; C&AG's Report, para 4.15 Back
58
C&AG's Report, para 3.25 Back
59
Q 12 Back
60
Qq 15, 70 Back
| 
