Regulatory Enforcement and Sanctions Bill [HL]

These amendments would give businesses operating in, and regulated by, only one local authority access to some of the benefits of the primary authority scheme—in particular, access to arbitration by the LBRO. I understand that the intention behind the amendments is to defend the interests of small businesses, but this is not a large versus small business issue. The benefits of the primary authority scheme can be enjoyed by a small business that operates across two local authorities in the same way as they can be enjoyed by large retailers that operate in every local authority in the country. However, the primary authority scheme has been designed to address a specific problem that affects only businesses regulated by more than one local authority—that is, that advice, guidance and enforcement can vary from one local authority to another. The primary authority scheme does not give a business a general right of appeal. The scheme has been created purely to promote consistency of advice and enforcement among local authorities. It is not clear that single-site businesses experience similar inconsistency where they are regulated by only one local authority; nor was this a concern raised in the responses received to the consultation on the Bill. We believe that the inclusion of the amendments would create a significant disincentive for local authorities to give advice to the single-site businesses that operate within their boundaries. With the threat that such advice could be challenged hanging over its head, a local authority might well cut its losses, cease to provide advice and, rather, use formal enforcement as a means of securing compliance. That would be to the great detriment of small businesses that rely on the advice they receive from local authorities. We listened very carefully to small businesses throughout the consultation period. Their main concern with the primary authority scheme is to ensure that, where a local authority is nominated for the statutory scheme with a particular business, that will not drain resources away from the support and advice that local authority enforcement officers routinely give them. The noble Baroness, Lady Wilcox, mentioned that point at Second Reading. Our inclusion of a charging provision provides much-needed clarity and will allow local authorities to recover their primary authority costs, should they wish to do so. A number of noble Lords were eager to explore the benefits that the LBRO would bring for small businesses more generally, and perhaps I may discuss these briefly. First, the LBRO’s general functions will seek to minimise burdens on all businesses. Its guidance to local authorities is likely to address issues such as the best way to support businesses to compliance where they have limited time and resources for finding out the law. Secondly, the LBRO’s role in setting a short and strategic list of national enforcement priorities will create greater certainty and security for everyone. Lastly, but not least, there is nothing to stop a small business bringing a particular issue to the LBRO’s attention for action through guidance and, if appropriate, direction. Noble Lords will naturally expect assurances that, in carrying out its general duties, the LBRO will not neglect the particular interests of small businesses. I am happy to give that assurance, but the relevant functions are those set out under Part 1, which we debated earlier. I hope that, on the basis of what I have said, the noble Lord will feel able to withdraw the amendment and, further, that he will feel satisfied that the concerns of small businesses are being looked after.