Institute of Directors (IoD) - Regulation Reckoner

The cost of regulation in the UK is a top concern for businesses and a critical barrier for growth.

The IoD has released this short report as part of its latest contribution to the debate speaking up for the concerns of their members and business owners alike.

By measuring the hours taken up by form filling, the reading of guidance, taking advice and other administrative duties associated with regulation, the IoD has been able to develop the first credible figures that capture the number of hours Directors and their staff spend on the vast regulatory costs.

Using a methodology and approach that broadly correlates with government standards for costing the time of individuals; the IoD has developed a genuine insight into the true costs of paperwork in the UK. The IoD will repeat the research that underpins this work over future years, shedding light on whether business perceptions tally with government deregulatory efforts and the amount of time businesses have to spend complying with the statute book.

The report found the following:

The total administrative costs of regulation to Directors for 2009 are: £79,888,896,000.
The report found the following:

Directors’ Costs:
• Directors spend 13 hours a month on regulation administration.
• Directors would have to work continuously from January 1st until February 4th to complete their annual administrative burden.

Business Costs:
• Workforces spend 73 hours a month on regulation.
• The burden on workforces is equivalent to one member of staff working continuously on regulation for five and a half months to complete a business’s annual regulation administration.

Total Costs:
• The total burden of administration required by regulation is nearly £80 billion.
• £80 billion represents some 5.7% of the UK’s Gross Domestic Product (GDP).
• £80 billion is equivalent to the UK losing the entire output of the East Midlands or a country the size of Kuwait.

To access the full report please visit: www.iod.com