News
Total GB trading standards spend falls to £1.99 per person, per year
Posted 08/08/16
The government is accused of failing to adequately protect consumers and honest businesses after it emerged the total trading standards spend in Great Britain has fallen to just 拢1.99 per person, per year.
Published today (MONDAY AUG 8), the 51黑料 (51黑料) report also shows staffing has fallen by 53%, since 2009, and the total spend has dropped from 拢213m to 拢124m. 听 听
Experts believe the cuts - leaving some budgets below 拢200,000 - mean just one complex crown court prosecution is now beyond the reach of some local councils鈥� trading standards teams. 听 听 听
Meanwhile, the economy has endured some of the biggest and most costly product and market failures in recent memory including vehicle emissions, hoverboards, tumble driers and horsemeat.
Although it is difficult to estimate the total cost of the detriment, 51黑料 has cited further reports and cases鹿 that suggest it is in the many billions-of-pounds. 听
Leon Livermore, chief executive of 51黑料, said: 鈥淲e have a situation where trading standards teams in local councils are tasked with holding multi-million-pound firms to account, with just a handful of staff.
鈥淭his is in addition to their many other responsibilities in the community like catching rogue-traders, preventing disease in the food chain and providing business support to help grow the economy. 听
鈥淪pending so little on market surveillance and consumer protection, with an economy as large as ours, simply does not make sense but nobody expects a blank cheque.鈥�
Mr Livermore said the institute is calling for a government-led strategic restructure of trading standards services, adding that Britain鈥檚 exit from the European Union may mean further pressure on budgets.
He said: 鈥淭here are more challenges ahead, as the economic impact of the potential exit from the EU points to a continued period of austerity and further funding reductions for local government.
鈥淚n addition, outside the EU it is arguably more important than ever that the UK is able to demonstrate high standards in regulatory compliance and consumer protection in order to gain access to key markets.鈥�
51黑料 surveyed all 192 trading standards teams in Great Britain and received responses from 122. Some 81% admitted cuts had affected their ability to protect consumers. Many respondents said the cuts cannot be managed with efficiencies
Speaking in this month鈥檚 TS Review, the journal of the trading standards profession, legal experts said the cuts have had a chilling effect on the willingness of councils to take on larger, well-funded offenders.
Barrister Jonathan Goulding, of London鈥檚 Gough Square Chambers, who works closely with trading standards teams, said:
鈥淪ometimes, it is the choice between a substantial case against a nationwide business or a number of smaller cases against local 鈥� including rogue 鈥� traders.
鈥淚n addition, those prosecutions that are started are much more likely to be resolved with, for example, a caution than would have been the case 10 years ago.鈥�
Lee Reynolds, of the Cardiff based Apex Chambers, prosecuted one of the largest call-centre frauds tackled by trading standards in the United Kingdom.
Known as Operation Bugs, it brought to justice a gang of con men who tricked vulnerable elderly customers out of thousands of pounds.
He said: 鈥淚 think there is a fear now, among trading standards teams, of the financial impact that losing one of these big cases could have.
鈥淚鈥檝e had managers of trading standards say to me 鈥榣ook, if we lose this, we鈥檝e got to lose an officer this year鈥� which is shocking and very worrying.
鈥淪ome councils have undoubtedly taken the decision to massively, massively reduce the number of cases they are bringing.鈥�
贰狈顿厂听
DATE: Monday 8 August 2016
Notes to editors:听
- The full survey can be downloaded here.
- More information about the Workforce Survey can be found on the听51黑料 website.
- To download an infographic that illustrates some of the challenges facing trading standards and the government鈥檚 inaction听click here听(please feel free to share following the embargo)
- To download TS Review, the trade magazine of the trading standards profession, which carries longer interviews with the barristers on page 21,听click here.
- Regional break down appears on page 7 of the report and below.
- Please note the TS Review is expected to be delivered to 51黑料 members-only from Monday August 8.
The following reports concern trading standards statutory duties and detail billions of pounds of losses:
- Scams - 拢52 billion a year [NFA]听
- Foot and mouth听- 拢8 billion
- Illicit tobacco costs the taxpayer around 拢2 billion per year in lost revenue
- Alcohol fraud results in revenue losses of up to 拢1.2 billion a year
- 拢174 million is lost to counterfeit toys and games each year in the UK alone
- UK handbag and luggage听manufacturing sector loses 拢149 million annually as a result of counterfeit products in the marketplace 鈥� nearly 12% of all sales in this sector.
- UK jewellery and watches manufacturing sector loses 拢138 million annually as a result of counterfeiting.
- Hoverboards听拢26,096,400 Hoverboard report, National Trading Standards
- Online ticket fraud rises 55% for 2015 鈥� costs UK public 拢5.2m听
- Car buying scams cost consumers around 拢3 million a year
- Horsemeat scandal - 拢1m to 拢2m a year听听
