New regs may hit support for small firms
New legislation governing the way councils regulate businesses came into force on October 1. The Regulatory Enforcement and Sanctions Act 2008 established the Local Better Regulation Office (LBRO) and introduces new ways of working for local authorities.
The Act aims to improve the way local authorities enforce trading standards and environmental health regulations. So, is it political nonsense or relevant to the food and drink industry?
One controversial part of the new legislation which deals with local authority and business interactions will come into force in April 2009.
The Act provides for the creation of 'primary authorities' - councils which are nominated to deal with all regulatory enquiries relating to a particular business. Any business with premises in more than one council area may request, and get, a primary authority partnership. From April next year the LBRO will be able to nominate a local authority to fulfil that role, whether the authority likes it or not, which is a concern for the Local Authorities Coordinators of Regulatory Services (LACORS).
It is a possibility, according to LACORS, that this will disproportionately affect large cities and unitary councils where big corporations tend to have their head offices. LACORS said: "There is a fear that small businesses in these areas could find themselves receiving less support and advice from officers who will have a statutory duty to deal with their primary authority businesses."
As this new arrangement has a statutory basis, unlike the old home authority system there is the potential for better consistency of legal interpretation. Before local regulators start proceedings against a participating company, they need to agree with its Primary Authority a course of enforcement action consistent with previously given advice.
Kath Veal is business manager, Regulatory and Technical Consultancy Services at Leatherhead Food International
