2011/12 Annual Report on Government Statistical Surveys of Businesses and Local Authorities

Summary

The 2011-12 Annual Report on Government Statistical Surveys of businesses and local authorities shows movements in administrative burden costs for surveys contributing to official statistics and thus provides an overview of survey activity across the Government Statistical Service. It aims to help users and data providers judge the effectiveness of government efforts to monitor and minimise the administrative burden costs whilst maintaining a system of reliable and accurate statistics. Due to changes in several elements of survey control procedures, figures provided for the 2011/12 Annual Report are not comparable with figures presented in previous Annual Reports. These changes are explained throughout the 2011-12 Annual Report.

Introduction

This report provides information on the costs to businesses and local authorities of completing government statistical surveys. Reports in previous years have covered all government statistical surveys to businesses and local authorities. However, the Statistics and Registration Service Act 2007 created the UK Statistics Authority whose functions include the preparation and publication of a Code of Practice for Statistics. The Code of Practice for Official Statistics (the Code), published in 2009, applies to all UK bodies that produce and publish official statistics. The Authority has decided that with effect from 2011/12 survey controls should be driven by the Code rather than the Prime Minister’s (PM’s) Instructions¹. The effect of this change means that this report will only cover burden imposed on businesses and local authorities when complying with surveys contributing to official statistics² . Thus, the figures contained in this report refer only to a subset of the surveys covered in previous reports. Surveys outside the scope will continue to be monitored via the Online List of Government Statistical Surveys (OLGSS). Details on the OLGSS can be found in the Future developments section.

The PM’s Instructions only applied to England and Wales. The devolution settlements relating to Scotland and Northern Ireland meant that survey control was no longer a matter reserved for Westminster. Hence, the control of statistical surveys in Scotland and Northern Ireland³ has been a devolved matter for over a decade. Heads of Profession have agreed to continue the present reporting arrangements.

As announced in the 2010/11 Report, there has also been a change in the methodology used to measure compliance costs for this reporting period that was ratified by Government Statistical Service (GSS) Heads of Profession in March 2011. This new methodology has since been implemented across the GSS, and has been used for calculating compliance for this report. The two main differences between the methodologies are:

• a change in the hourly rates used as an indication of the cost of time spent by staff in the businesses and local authorities responding to the surveys, and

• the calculation is now based on actual response rather than on the number in the sample.

These changes have caused a substantial drop in compliance costs for 2011/12 compared with figures using the previous methodology. This report does not suggest that this decrease is the result of an actual decrease in compliance overall, but that it is the result of a change in compliance cost calculations and the inclusion of fewer surveys. Explanations for these changes are provided throughout the Report.

Notes for Introduction

1. The Prime Minister’s (PM’s) Instructions on the Control of Statistical Surveys set out the procedures for the control of government statistical surveys and the responsibilities for the Survey Control Unit (SCU), departments, and ministers. The PM’s Instructions covered all statistical surveys but mainly focussed on those to businesses and local authorities.
2. The definition of official statistics can be found on the ‘Identifying Official Statistics’ page of the UK Statistics Authority website. 
3. Northern Ireland (NI) and the Northern Ireland Statistics and Research Agency (NISRA) has provided a link to its report on compliance costs.

2011/12 Report

The 2011/12 Report is the latest in an annual series¹ providing a picture of surveys of businesses and local authorities conducted across government that contribute to official statistics. It aims to help users and data providers judge the effectiveness of government efforts to minimise the costs of complying with government surveys while maintaining a system of reliable and accurate statistics. The report covers costs incurred by businesses and local authorities in complying with regular and ad-hoc government surveys conducted in the past financial year, or for which fieldwork began in this period. The report also provides the number of statistical surveys carried out by each government department. Only statistical surveys that contribute to official statistics are included within the 2011/12 calculation.

Notes for 2011/12 Report

1. Previous reports in this series can be found on the ONS website.

Background to monitoring and reducing burden of complying with government surveys

Survey Control Unit (SCU) has a number of responsibilities; one of these is to produce this annual report.

Information from statistical surveys is fundamental to good government, to the delivery of public services and to aid decision-making in all sectors of society. Government departments are required to monitor and minimise the burden posed by these surveys.

Principle 6 of the Code (Proportionate Burden) states:
The cost burden on data suppliers should not be excessive and should be assessed relative to the benefits arising from the use of the statistics.

It also sets out the practices that should be undertaken by producers of official statistics.

Initiatives for reducing compliance burden include:

The ‘One-In, One-Out rule’ (currently in place for surveys run under a regulation)
When Ministers seek to introduce new UK regulations which impose costs on business or the voluntary sector, they have to identify current UK regulations, with an equivalent value that can be removed.

The ‘No Gold Plating’ rule (currently in place for surveys run because of an EU directive)
Gold Plating occurs when implementation goes beyond the minimum necessary to comply with an EU directive or regulation, for example by:

• extending the scope

• adding to the substantive requirement

• substituting wider UK legal terms for those used in the directive or regulation

• not taking full advantage of any derogations which keep requirements to a minimum

• retaining pre-existing UK standards where they are higher than those required by the
  directive or regulation

• implementing early, before the date given in the directive or regulation
  

Calculating statistical survey compliance costs

Previous annual reports calculated the costs of complying with government statistical survey requests using the same methodology. This methodology used, separately for each survey, the number of questionnaires despatched (or otherwise requested) multiplied by the average completion time, with the result then multiplied by the typical hourly rate of pay of the respondent.

The hourly rates were based on Civil Servant pay rates for five ‘management’ levels from clerical to director, including an element to reflect overheads and pensions. These hourly rates were inflated each year using the average annual increase from the Annual Survey of Hours and Earnings (ASHE).

During 2010, a GSS Respondent Burden Task Force considered the methodology used to calculate the compliance costs for statistical surveys. To be able to report the estimated costs across government, a new, consistent method for calculating compliance costs was developed by the task force, approved by the GSS Statistical Policy and Standards Committee, and ratified by GSS Heads of Profession.

The new compliance cost model for surveys to businesses and local authorities, used in this report and in future reports in this series is outlined below.

Compliance cost model for surveys to businesses and local authorities:

burden = [{n_{resp,main_surv} x med(t_{main_surv})} + {n_{val,main_surv} x med(t_val)}] x hourly_rate

              +

              [prop_{external costs} x n_{resp,main_surv}] x med(external cost)

where:

Further guidance on how to calculate compliance costs (781 Kb Word document) using the new methodology can be found on the ONS website.

Separating the two series

Government departments were given the opportunity to provide revised figures for 2010/11 using the previous methodology. They also provided retrospective figures for 2010/11 using the new methodology based on their revised figures, not those originally provided. Information for 2011/12 is provided in both the previous and new methodology. Consequently two years of data (2010/11 and 2011/12) using the new methodology and five years of data (2007/08 to 2011/12) using the previous methodology are shown in Figure A.

A series using the new methodology is shown alongside the previous series in Figure A. The two series are separate because:

• the two methodologies use different hourly rates to cost the time taken by staff of businesses and local authorities,

• due to the change in governance (explained in the Introduction), figures provided prior to 2010/11 are based on all government statistical surveys to businesses and local authorities, whereas the figures for 2011/12 are based on surveys contributing to official statistics only, and

• the previous methodology calculated compliance costs on 100 per cent response rates.  Compliance costs using the new methodology are based on actual response.
  

Summary of statistical survey compliance costs

The analysis contained in this report is based primarily on the new methodology. However, where necessary, figures using both the previous and the new methodology are shown and explanations of any differences are provided.

• In 2011/12, a total of 331 statistical surveys of businesses and local authorities were conducted, of which 157 were voluntary and 174 statutory. In 2010/11, 565 surveys were conducted. Some of this year-on-year decrease is explained by the change in governance and thus, surveys that do not contribute to official statistics are excluded from the 2011/12 figures.

• Approximately 2.2 million questionnaires were used in 2011/12, compared with 3.1 million questionnaires in 2010/11, excluding Intrastat¹.

• Surveys contributing to official statistics imposed an estimated £49.5 million compliance cost on respondents, which equates to a 6.4 per cent (£3.4 million) decrease on the previous year (using the new methodology). However these total compliance costs are not comparable due to the change in the reporting criteria. Explanations of major departmental changes in compliance costs between 2010/11 and 2011/12 are discussed in the Explanation of major changes section.

Please note that some departments have revised their 2010/11 figures from those published last year. Information about major revisions is provided in the Major revisions to 2010/11 figures section.

In general, this report shows the compliance costs at current prices: that is, in terms of staff costs at the time the statistical surveys were run. However, it is useful to summarise the change over time in terms of staff costs at constant prices. Figure A gives an indication of the trend over time at both valuations.

Figure A, 2007/08 to 2011/12 compliance costs at current and constant prices using the previous methodology and 2010/11 to 2011/12 compliance costs at current and constant prices using the new methodology

Notes:

1. Source: Government Departments.
2. Vertical line = introduction of new governance after 2010/11.
3. For further information see the Calculating statistical survey compliance costs section and the Separating the two series section.

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Comparison of compliance costs using the previous and new methodology for 2010/11 and 2011/12

The deviation in compliance costs at current prices for the period 2010/11 to 2011/12, for the new and previous methodology is shown in Figure A.

New methodology

The 6.4 per cent (£3.4 million) decrease in compliance costs from the previous year (2010/11) in current price terms equates to a decrease of 5.1 per cent (£2.7 million) at constant 2011/12 prices.

Previous methodology

The 0.6 per cent (£774,000) increase in compliance costs from the previous year (2010/11) in current price terms equates to a decrease of 1.4 per cent (£1.8 million) at constant 2011/12 prices.

The difference in the direction of the trend between the new and previous methodologies (at current prices) is because the 2011 ASHE hourly rates decreased, when compared with the same ASHE management levels used in 2010 for the new methodology. In contrast, the Civil Servant hourly rates used in the previous methodology are adjusted each year using the overall ASHE inflation rate. Consequently, the 2011/12 previous methodology hourly rates increased when compared with the 2010/11 hourly rates.

Tables 1 and 2 in the Detailed breakdown of statistical survey compliance information section give breakdowns of the costs summarised above, in current price terms only. 

Notes for Summary of statistical survey compliance costs

1. In the 2011/12 Annual Report and consistent with previous reports, Intrastat is compiled from monthly trade declarations made by VAT registered businesses, which are made up of individual 'lines' of trade. This statistical information provides details on the movement of goods to and from EU Member States.

   From 2011/12, HMRC adopted a new method of calculating compliance costs, which is based on completion of the whole declaration (questionnaire), as opposed to individual lines of trade. This change will be reflected in the number of questionnaires in the 2012/13 Annual Report
   

Explanation of major changes

Tables 1 and 2, in the Detailed breakdown of statistical survey compliance information section, show the changes in compliance costs for 2011/12 for each department when compared with 2010/11. Table 3 indicates that some of these changes are due to increases or decreases in the number of surveys run by departments (some of which may be run biennially). Furthermore, some of the changes in compliance costs are a result of the new reporting criteria as explained in the Introduction section of this report (i.e. surveys that do not contribute to official statistics are included in the 2010/11 figures but not in the 2011/12 figures).

There are some changes in compliance costs that should be noted specifically. In the Major changes between 2010/11 and 2011/12 section, we have focused on those departments whose compliance costs have changed by at least 10 per cent and £80,000 from last year. Previous reports have noted changes of 10% and £200,000. This cost threshold has been reduced in line with the new methodology and the consequent lower overall compliance costs.

Major revisions to 2010/11 figures

Departments are given the opportunity to revise figures published the previous year (in this case 2010/11 figures). Where figures have been revised, these are identified in the tables using an ‘r’ (as seen in Tables 1 and 3 in the Detailed breakdown of statistical survey compliance information section). However, only revisions using the previous methodology are known. An explanation of major revisions using the new methodology has not been provided as figures using the new methodology were provided after publication of the 2010/11 Report, so initial 2010/11 figures using the new methodology are not available.

Major changes between 2010/11 and 2011/12

The Department for Education (DfE) reported a decrease in compliance of £913,000 (-13%). DfE attribute the decrease to the change in the reporting criteria, which has resulted in fewer surveys being included in the figures, as only a subset of their surveys contribute to official statistics.

The Department for Environment, Food and Rural Affairs (DEFRA) reported a decrease in compliance costs of £665,000 (-51%). DEFRA attributes the majority of the decrease to the change in the reporting criteria, which has resulted in fewer surveys being included in the figures, as only a subset of their surveys contribute to official statistics. Other initiatives to reduce the burden include, the Labour Survey being incorporated into the June Census of Agriculture and Horticulture to reduce burden on farmers and the June Census of Agricultural and Horticulture reverted to its reduced sample after the full census in 2010. 

The Department for Business Innovation and Skills (BIS) reported a decrease in compliance of £380,000 (-51%). BIS attributes this substantial fall to the reduction in the number of surveys considered, as the vast majority of BIS surveys do not contribute to official statistics.

The Information Centre (IC) report on behalf of the Department for HeaIth (DH), so all figures provided by the IC are referred to in the tables as DH. IC reported a decrease in compliance of £188,000 (-13%). IC attributes the decrease to a discontinuation of two surveys in 2011/12.

The Cabinet Office (CO) reported a decrease in compliance of £115,000 (-100%). CO did not conduct any surveys contributing to official statistics during 2011/12.
 

Future developments

• To ensure all statistical surveys conducted by government departments, agencies and executive bodies continue to be measured and monitored, SCU has compiled an Online List of Government Statistical Surveys (OLGSS) to businesses and local authorities (including those surveys that contribute to official and non-official statistics). The OLGSS will be published on the ONS website in February 2013, and functions as a central source of information and a place for notification of newly proposed surveys and planned changes to existing surveys. In line with the Code, it is anticipated that the list will be expanded in the future to include surveys to individuals and households.

• As from January 2013, initiatives for reducing compliance burden as reported in the Background to monitoring and reducing burden of complying with government surveys section will change from a ‘One-In, One-Out rule’ to a ‘One-In, Two-Out rule’.

• Currently the Intrastat¹ monthly trade returns are based on individual 'lines' of declared trade, which have been excluded from the number of questionnaires from this and previous reports. However in the 2012/13 Annual Report the Intrastat monthly trade returns made by VAT registered businesses will be based on the number of completed whole declarations by businesses, as opposed to individual 'lines' of declared trade. Therefore, in the 2012/13 Report the number of completed whole declarations will count as the number of questionnaires used.
  

Notes for Future developments

1. More information about Intrastat can be found in the HMRC Compliance Report. 

    

Departmental changes in 2011/12

During 2011/12, the Information Centre (IC) was renamed the Health and Social Care Information Centre (HSCIC). This name will be used in the 2012/13 report.

Detailed breakdown of statistical survey compliance information

The following tables give detailed breakdowns, by department, of the information in the Summary of statistical survey compliance costs section.

Table 1 shows the changes in compliance costs (for both the previous and new methodologies) arising from departments’ statistical surveys in 2011/12 compared with 2010/11. Departments marked with an asterisk have been identified as having changes in compliance costs of at least 10 per cent and £80,000 over the previous year, using the new methodology. The main reasons for these changes are explained in the Major changes between 2010/11 and 2011/12 section.

Table 1: Total costs of complying with government statistical surveys: Last two years at current prices

Table notes:

1. Source: Government departments
2. r = revised by individual departments after publication of 2010/11 report. Figures using the new methodology were only provided following publication of the 2010/11 Report, thus revisions for the new metholdogy are not applicable.
3. * = major changes in compliance costs from previous year, for new methodology only.
4. Figures may not add exactly due to rounding.
5. Departments’ names have been abbreviated as shown in Appendix A – eg the Cabinet Office is shown as “CO”.
6. A direct comparison between the compliance costs for 2010/11 and 2011/12 using the previous and new methodology can not be made because of the change in governance.  The 2011/12 figures are based on surveys contributing to official statistics only, whereas 2010/11 figures are based on all government statistical surveys to businesses and local authorities.

Table 2 gives the compliance costs and year-on-year changes shown in Table 1, broken down by businesses and local authorities. These figures use the new methodology. The 2011/12 figures only include statistical surveys that contribute to official statistics (a subset of those surveys included in the 2010/11 figures). Further information on this change in reporting criteria is included in the Introduction section of this report.

Table 2: Costs to businesses and local authorities of complying with government statistical surveys: Last two years (current prices) using new methodology for calculating compliance costs

Table notes:

1. Source: Government departments
2. Figures may not add exactly due to rounding.
3. Departments’ names have been abbreviated as shown in Appendix A – eg the Cabinet Office is shown as “CO”.
4. A direct comparison between the compliance costs for 2010/11 and 2011/12 using the previous and new methodology can not be made because of the change in governance.  The 2011/12 figures are based on surveys contributing to official statistics only, whereas 2010/11 figures are based on all government statistical surveys to businesses and local authorities.

Table 3 shows the number of government statistical surveys carried out by each department, detailing the proportion of these that were voluntary rather than statutory and the change in the total number of surveys when compared with 2010/11.

Table 3: Number of government statistical surveys

Table notes:

1. Source: Government departments
2. r = revised by individual departments after publication of 2010/11 report.
3. Changes in the number of surveys between 2010/11 and 2011/12  may be due to a change in governance. The 2011/12 figures are based on surveys contributing to official statistics only, whereas 2010/11 figures are based on all government statistical surveys to businesses and local authorities.
4. Figures may not add exactly due to rounding.

5. Departments’ names have been abbreviated as shown in Appendix A – eg the Cabinet Office is shown as "CO".

Links to departments’ compliance information

Principle 6, Practice 1 of the Code requires producers of official statistics to:

Report annually the estimated costs (for example, on businesses, service providers, or the public) of responding to statistical surveys and strive to develop methods that will reduce the costs to individual organisations or people.

This section provides links to departments’ information about their measurement of the cost in complying with their statistical surveys.

Links to departments' compliance information

BIS  

DCLG 

CO - Link not provided 

DECC  

DCMS

DfE   

DEFRA - Link not provided 

DFID 

DfT 

DH 

DWP - Link not provided 

FC  

FSA - Link not provided

GAD - Not applicable

HMRC - Link not provided

HMT - Not applicable

HO - Not applicable

HSE 

MoJ - Link not provided

NAO - Link not provided

NS&I - Link not provided

OFT 

ONS 

WG   

Notes for Links to departments’ compliance information

1. Source: Government departments
2. Not applicable = departments who have not conducted surveys for two years consecutively

Background notes

1. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

Appendix A. Departments and their abbreviations

Notes for Appendix A. Departments and their abbreviations

1. Source: Government departments

Appendix B. References

This section provides hyperlinks for the references used in the 2011/12 Annual Report.

Statistics and Registration Service Act (2007)    

Identifying Official Statistics

Compliance Report for Northern Ireland (NI) and the Northern Ireland Statistics and Research Agency (NISRA)

Previous Annual Reports

Guidance on how to calculate compliance costs (781 Kb Word document)

Compliance Report for HM Revenue and Customs