Source · Select Committees · Public Accounts Committee

Recommendation 3

3 Not Addressed

Potential large-scale reductions in staffing levels in regulators will not be achieved without fundamental changes...

Recommendation
Potential large-scale reductions in staffing levels in regulators will not be achieved without fundamental changes in regulatory approaches. In the Spending Review 2021, the regulators received funding settlements they believed were sufficient to enable them to fulfil their post-EU Exit regulatory responsibilities. Since then, they have been asked (along with the rest of government) to model headcount reductions of 20%, 30% and 40%. Although it is not clear what cuts they may eventually be asked to make, all three regulators are clear that delivering their expanded responsibilities 6 Regulating after EU Exit with headcount reductions on this scale will be extremely challenging. For example, FSA’s SR21 settlement provided for a growth in staff numbers to fulfil its new responsibilities after EU Exit and to directly employ veterinarians. Any future requirement to reduce its number of veterinarians would have a significant impact on the meat industry which, under current regulations, cannot place meat on the market in the UK or export it without veterinary oversight. Regulatory reform to adopt a more risk-based approach could reduce the need for veterinarians, but this would require legislative change. Recommendation: The regulators and policy departments should identify the impact of potential cuts on regulatory risk and set out where significant changes in the regulatory model would be needed to balance the two.
Government Response Summary
The government agrees with the Committee’s recommendation, but then describes the NO programme, Clean Air Zones and the Local Air Quality Management (LAQM) requirements.
Government Response Not Addressed
HM Government Not Addressed
The government agrees with the Committee’s recommendation approach in their area in consultation with their local communities. Under the NO programme, local authorities are responsible for developing their own Clean Air Plans. Throughout plan development, local authorities are supported by a dedicated account manager. Following a Clean Air Zone launch, the government carries out lessons learned exercises which include seeking feedback on the joint working relationship. For the government to assure itself it is meeting its obligation to ensure NO compliance in the shortest possible time, local authorities are required to benchmark their proposals against the delivery of a Clean Air Zone. Each local authority has the flexibility to identify measures other than Clean Air Zones; indeed, the Clean Air Zone Framework is clear that non-charging measures should be preferred if they will deliver compliance as quickly as charging. Under the Local Air Quality Management (LAQM) requirements, the government also provides support to local authorities in carrying out their LAQM duties through a dedicated helpdesk and statutory policy and technical guidance. This provides a clear steer for local authorities while allowing them to determine the measures they take and how they communicate in line with local priorities. Following the strengthening of the LAQM and Smoke Control Area framework through the Environment Act 2021, officials are currently developing a programme of engagement with local authorities. The government will write to the Committee by the end of February 2023 with a further update on how it is engaging with local authorities.