Fireworks and Pyrotechnics Articles (Scotland) Bill: business and regulatory impact assessment

6. Options (including Costs and Benefits)

6.1 Two options have been actively considered:

• Option 1: 'Do nothing' – No measures are introduced
• Option 2: Introduce a significant package of legislative measures through a Bill to introduce further restrictions on how the general public can purchase and use fireworks and pyrotechnic articles in Scotland.

6.2 An outline of each option is included below, along with a summary of the assumed costs and benefits of each option. As Option 2 consists of a number of measures to form a comprehensive package of change, the benefits and costs are compared to a 'do nothing' option, as opposed to providing a cost/benefit analysis of each single measure contained within the Bill. In many cases, the anticipated benefits and costs can be described, but cannot be easily quantified. These benefits are described and, where possible, a discussion is given of the relevant evidence base that underpins the scale and nature of these anticipated impacts.

Option 1: Do Nothing

6.3 Option 1 involves no new legislative measures in relation to the sale and use of fireworks and the misuse of pyrotechnic articles in Scotland being progressed.

Option 1: Costs

6.4 There are a number of potential costs to adopting a 'do nothing' approach:

• Demonstrates lack of Scottish Government action in response to the strong voice for change which emerged from the 2019 consultation, the support demonstrated for proposed measures in the 2021 consultation and the recommendations to emerge from the Firework Review Group and the stakeholder discussions on the misuse of pyrotechnics. On these lines, too, it would also erroneously suggest that the Scottish Government does not prioritise community and individual safety.
• Damage to stakeholder relationships including the emergency services and animal welfare charities, particularly organisations represented on the Firework Review Group, who have contributed towards and endorsed the recommendations of the Group for legislative change.
• No legislative measures introduced to seek to improve outcomes for people and communities by reducing the harm caused by fireworks misuse. A lack of legislative measures will mean that the cultural shift that was recommended by the Firework Review Group cannot be achieved, and therefore outcomes for people in relation to fireworks are unlikely to improve. Police Scotland warnings of the risk of serious injury or death by pyrotechnic misuse if action isn't taken would go unheeded.
• Pressure to increase enforcement but with no legislative changes progressed to shift the culture of fireworks suggests there is no motivation or driver for behaviours to change and the risk of harm caused by fireworks, in terms of physical injuries and in the wider sense, continues.

Option 1: Benefits

6.5 There are a number of potential benefits to adopting a 'do nothing' approach:

• No additional financial burden to the public purse as there would be no funding required to support implementation and operation of new legislative measures.
• Enforcement authorities would not be required to adapt processes to adjust to requirements and responsibilities introduced through new measures.
• Firework retailers will be able to continue to sell fireworks to consumers without any additional restrictions. Whilst economic impacts of new measures are difficult to quantify, business as usual would be able to continue.

Option 2: Introduce a significant package of legislative change through a Bill to introduce further restrictions on how the general public can purchase and use fireworks and pyrotechnic articles in Scotland.

Fireworks

6.6 The Firework Review Group recommended that a significant package of legislative change is required to bring about a cultural shift in the relationship Scotland has with fireworks, supported by preventative activity such as education and awareness raising, improved outcomes for people in relation to noise and disturbance, anti-social behaviour, community safety and wellbeing and reducing firework related injuries.

6.7 A number of measures have been considered that could potentially form part of a package of legislative change relating to implementing Option 2. Analysing each individual measure in isolation would risk understating the collective impact of the measures as a whole, and the intention to progress them collectively if Option 2 is preferred. Each measure has been developed taking into consideration a range of evidence including findings from the 2021 public consultation, the recommendations from the Firework Review Group and responses to the 2019 public consultation.

• Firework Licensing System: The Firework Review Group recognised that the introduction of mandatory conditions at the point of sale of fireworks could potentially have a positive impact on promoting and encouraging the safe and appropriate use of fireworks in Scotland, and support the purchase of fireworks being a well thought out and planned, rather than spontaneous, transaction. The Bill implements this through a firework licensing system that requires members of the public to apply for and obtain a valid fireworks licence to enable them to lawfully purchase, possess, acquire and use fireworks in Scotland. A core part of the licensing system will be the requirement of applicants to successfully complete a firework training course. Responses to the 2021 consultation have informed development of this measure, including elements such as who will operate the system, which will be undertaken by the Scottish Government or under arrangements made by them; and the licence term. The consultation paper proposed a 12 month licence term. Following analysis of consultation responses and consideration of other licensing regimes in Scotland where appropriate (such as Air Weapons certificates), it is now intended that the licence term will be 5 years. The extended licence term seeks to introduce new measures on how the public can purchase and use fireworks, particularly around ensuring people have essential knowledge which means they know how to use fireworks in a safe and appropriate manner, without being excessively restrictive and potentially driving people towards illegitimate methods of accessing fireworks.

• Restricting the days fireworks can be used by the general public: The Firework Review Group suggested that restricting the days fireworks can be used by the general public has the potential to ease the burden on emergency services and reduce the noise and disturbance that fireworks can cause to people and communities. The below dates were included in the 2021 consultation as days when the general public are permitted to use fireworks. These dates align with existing traditional firework periods, where fireworks form part of religious or cultural celebrations around those dates:
  • 29 October to 12 November;
  • 28 December to 4 January;
  • The 1st day of Chinese New Year and the week immediately following it; and
  • The 1st day of Diwali and the week immediately following.

Further engagement with faith groups was undertaken during the 2021 consultation period to ensure that important festivals or events where fireworks already form an important part of celebrations were considered. The Sikh festival of Vaisakhi was highlighted, which led to the dates 7-16 April being included as part of this measure as dates when the public can use fireworks.

• Restricting the days fireworks can be supplied to the general public: Whilst this goes further than the Firework Review Group recommendation, relating to restricting the days the general public can use fireworks, this measure was developed in order to align the days that fireworks can be supplied with the days that they can be used, and received support in the 2021 consultation. It is considered that having fireworks available to purchase for long periods when they are not able to be used could lead to confusion for both retailers and consumers, and issues around stockpiling and the unsafe storage of fireworks.

• Firework Control Zones: The Firework Review Group recommended that provision should be made for no-fireworks areas to be introduced where it is not permitted for fireworks to be set off by the general public, with local communities having a key role in influencing this. They recognised this as offering the potential for targeted localised approaches based on the specific circumstances within different areas and communities. The purpose of this measure is to ensure that any system put in place to entirely restrict the use of fireworks by the general public in an area is proportionate and fit for purpose to work alongside a range of local preventative and diversionary activity.

• Proxy purchase and supply offence: The 2021 consultation sought views on the introduction of a proxy purchase offence for fireworks following the Firework Review Group recommendation that a proxy purchasing offence is introduced criminalising the non-retail supply of fireworks to people under the age of 18. This measure was further developed to include pyrotechnic articles following analysis of the consultation responses and discussions with Police Scotland, who advised that this was needed in order to protect children and young people from potential harm through the misuse of pyrotechnic articles. As with other age restricted products, children and young people will often look to adults to supply them with a product which would otherwise be difficult for them to obtain. Without such legislation, enforcement options would be limited which would in turn limit the ability of police to prevent children and young people from being exposed to the potential harms posed by pyrotechnic articles.

Pyrotechnic articles

6.8 The overarching policy aim of any proposed legislation on pyrotechnic articles has always been to tackle the misuse of pyrotechnic articles in an appropriate and proportionate way, while ensuring that these measures do not deter those with lawful authority or legitimate reason from carrying and using pyrotechnic articles. In particular, we are mindful of the need to avoid placing any barrier on those carrying or using pyrotechnic articles as visual distress aids (such as marine flares, or distress flares when hiking).

• Possession of a pyrotechnic article, including a firework, at, in the vicinity of, or travelling to, a designated event: The 2021 consultation asked for views on whether it should be an offence to carry a pyrotechnic article in a public place without reasonable excuse or lawful authority. Throughout the consultation period and beyond, we have therefore been mindful that a more general offence for carrying pyrotechnic articles could potentially have unintended consequences, discouraging those who we would wish to encourage to carry pyrotechnic safety devices from doing so, and not only raising safety concerns but potentially impacting on the sale of pyrotechnic articles bought for legitimate use. Therefore, the provision as drafted ensures that the offence targets misuse at particular places and events, where pyrotechnic misuse most often occurs, and where their misuse has the potential to be most dangerous. In doing so, it achieves the policy aim, while remaining proportionate, limiting the likelihood of unintended consequences, while being flexible enough should the evidence change as to where and when incidents occur.

• Stop and Search Power in relation to the possession offence: the 2021 consultation asked if police powers should be extended to allow a stop and search provision for anyone reasonably suspected of committing the offence; and to gather views on whether this proposed new offence should be wide enough to allow the police to stop and search a vehicle, for example a car, bus, tram or van. The majority of consultation respondents agreed with extending the Stop and Search Power, and including the search of a vehicle. This provision recognises that the preventative action favoured by Police Scotland – and Scottish Government – can only be achieved legislatively if the offence also comes with the ability to stop and search on reasonable suspicion of an offence being committed. Under existing legislation, Police already have search powers for offences through the Firework Act 2003 and any regulations made under the Act. Therefore, whilst the consultation asked about the specific issue of Stop and Search Powers as detailed above, it is considered that in order to align with existing enforcement powers and practice similar search powers should be included for offences across the Bill.

Option 2: Costs

6.9 It is reasonable to expect a reduction in demand for fireworks if the package of measures that comprise Option 2 is introduced.

6.10 A significant component of the costs imposed by the measures is a reduction in opportunities throughout the year that consumers (members of the public) will have to personally use and enjoy fireworks. Some respondents to the 2021 consultation highlighted that they felt that the proposed measures would only impact legitimate firework users and have no contribution towards reducing the deliberate misuse of fireworks. However, whilst the measures will introduce increased restrictions on the ability of consumers to purchase and use fireworks, it is considered that many legitimate firework users will continue to purchase and use fireworks within the boundaries of the law and will be willing to plan their fireworks purchases and use for specific times and take an online training course and pay for a licence in order to use fireworks. It is also difficult to anticipate what the impact might be on the sale of F1 and F4.

6.11 The economic impact of Option 2 is unclear due to the limited nature of economic data available (see below section on the Scottish Firms Impact Test). However, data provided by the British Firework Association (BFA) provides the following estimates associated with the importation, wholesale and retail of fireworks in Scotland^[3]:

• Almost £13m in retail sales value (including VAT).
• A maximum of 334 people are employed in the retail of consumer fireworks in Scotland in a given year, albeit with 291 employed on a seasonal basis, meaning the annual Full Time Equivalent employment would be significantly lower.
• In addition, the BFA estimate that employment in retail fireworks accounts for almost £1.9 million per year and that government revenue from retail fireworks in Scotland equals almost £2.7 million.

6.12 It would be reasonable to expect both the revenue and the employment generated by fireworks to be reduced accordingly if demand falls. Unfortunately, the available evidence does not provide enough substance to underpin a robust prediction of the impacts that the policy could have. However, illustrative modelling on the impact of the firework licensing system, based on simple assumptions (in the absence of economic evidence being available to inform the modelling), suggests this could reduce by between approximately £6 million per annum in a high impact scenario; approximately £4 million per annum in a medium impact scenario and approximately £2 million per annum in a low impact scenario. A reduction in demand would not just reduce revenues, but have knock on impacts for employment (as well as other factors, such as the wider use of fireworks).

6.13 There are also a number of associated costs for specific measures within Option 2. Examples of costs are set out below, alongside estimates that are included in the Financial Memorandum:

• Firework Licensing System: There will be financial and resource costs associated with developing, operating and managing the system. Modelling within the Financial Memorandum sets out estimated overall financial costs for the first three financial years of the system, including developing and designing the licence system, developing the firework training course and managing and operating the system, amounting to between £1.1 million and £2.9 million. This will be offset by the licence fee, which should cover operational costs.

Modelling has also been undertaken as part of the Financial Memorandum in relation to the licence fee level, and the revenue that could be generated under different scenarios comparing the fee level with possible levels of demand. For example, where there is low reduction in the demand for fireworks as a result of the licence system and a £30 licence fee applies (with the licence remaining valid for 5 years), there could be an income generated of approximately £3.9 million over a 5 year period. The fee level set will have regard to the costs associated with setting up the system and its ongoing operation, as well as ensuring it is not set at a rate which places overly restrictive barriers on the ability of individuals to purchase fireworks. It would be reasonable to expect licence fee revenues to be higher in the earlier years of operation (as enthusiasts apply for licences) and lower in later years (when many already have licences).

• Firework Control Zones: The majority of costs for local authorities will be staffing costs associated with scoping, establishing, and monitoring the impact of Fireworks Control Zones, as identified by the Short Life Working Group (further detail on the work of the group can be found at paragraph 7.14). Designating a Fireworks Control Zone will have a number of mandatory requirements including consulting with local communities and relevant public sector authorities and taking the views of these groups into account when considering and authorising such zones. It is estimated in the Financial Memorandum that the costs of setting up one Firework Control Zone, including staffing, consultation and communications, will be approximately £24,000. Drawing on the experience of local authority officers who sat on the Working Group, it is assumed that a few local authorities (primarily large urban) may designate multiple zones in their area, a small number of authorities may designate a single zone in their area, and the majority are unlikely to designate any zones.

• Restricting the days that fireworks can be supplied to the general public and restricting the days fireworks can be set off by the general public: This measure impacts retailers selling fireworks, particularly specialist firework retailers who are licensed to sell fireworks to the general public throughout the year. As outlined at paragraph 6.15, limited economic data is available. Retailers will, however, be able to continue to supply fireworks to professional display companies and firework operators in Scotland, as well as consumers outwith Scotland throughout the year and also F1 fireworks in Scotland throughout the year. This option also includes consideration of a power being provided to Scottish Ministers to, by regulation, make provision about the payment of compensation to address the economic impact of restricted days of supply, if evidence is demonstrated of this, for those whose trade or business is wholly or mainly concerned with the supply, distribution or importation of fireworks in Scotland.

• Enforcement of new offences associated with measures: There could be an additional financial and resource burden within the justice system associated with processing cases where people are charged with the proposed offences, including by police and the courts in Scotland. In relation to a summary case prosecuted in Scotland, average costs comprise prosecution costs of £444; court costs of £430 and legal assistance of £604. The intention of this measure is to act as a deterrent to supply fireworks to people under the age of 18 whilst having an appropriate offence in place where this is still found to have happened. Estimates within the Financial Memorandum of the costs of court prosecutions in relation to the proxy offence, as well as offences connected to the restrictions on days of use and supply detailed above, range from between approximately £15,000 - £37,000 per year for the first three years, however this is highly dependent on the behavioural response to the measures, and the subsequent response of justice partners as a result.

• Offence of being in possession of a pyrotechnic article, including a firework, at, in the vicinity of, or travelling to, a designated event: As with the introduction of any new criminal offence, it is difficult to estimate with certainty the costs that may be incurred by the justice system. The potential deterrent effect of the legislation, the use of this new offence as a more appropriate charge instead of others under existing legislation, as well as the facilitation of early intervention before damage and injury is caused, could mean overall savings, if not immediately, then in years to come. Therefore, it is not anticipated that there will be significant costs associated with the proposed changes in relation to pyrotechnic articles.

Option 2: Benefits

6.14 As outlined at paragraph 6.2, whilst benefits are difficult to quantify, a description is given, underpinned by evidence, of the assumed benefits and behavioural change as a result of the introduction of a comprehensive package of measures.

6.15 While there is a lack of economic data to underpin predictions about the precise impact of each individual measure, the international evidence and experience of countries that have introduced these measures, including a licensing system and reduced selling/use period of fireworks, indicates there has been positive outcomes and a reduction in injuries.

• Improved community safety and wellbeing: Responses to the 2019 and 2021 consultations indicated that people felt that the use of fireworks can cause significant harm to people, animals and whole communities. This includes through the deliberate misuse of fireworks by individuals, as well as the noise disturbance caused by the legitimate use of fireworks. Evidence highlights that heightened background noise levels and high peak sound levels (which can be harmful to human hearing), and increased noise levels, can cause particular distress to those with noise sensitivity, including people with autism; as well as the fear response to noise from fireworks that can have an adverse impact on animals^[4]. The package of measures within Option 2 can be expected to work collectively to reduce the overall number of fireworks being used by the general public in a random and ad hoc way and the subsequent negative impact on people and animals.
• Individuals and communities will be able to better plan and prepare for fireworks being used. The current unpredictable, sporadic nature of firework use was cited as an issue that causes significant disturbance to people in both the 2019 and 2021 consultation. During an engagement event with sight loss organisations as part of the 2021 consultation, attendees highlighted the disturbance fireworks can cause to their guide dogs over sustained periods of time when fireworks are widely available to purchase. Increased restrictions on when fireworks can be purchased and used by the public will particularly benefit those with noise sensitivity, such as people with autism or post-traumatic stress disorder, as well as animals that are distressed by the noise created by fireworks.
• Improved outcomes for people living in areas of increased deprivation: Data on firework injuries in Scotland^[5] makes a clear link between living in the lowest Scottish Index of Multiple Deprivation (SIMD) decile and being more likely to sustain an injury due to fireworks, with eight times as many patients attending hospital emergency departments from these areas than those living in the least deprived communities. By promoting the safe and considerate use, and ensuring those who do buy fireworks have a licence and have gone through a firework training course, it is expected that groups living in these areas will benefit the most from these measures.
• Reducing demand for emergency services, including surges in demand during traditional firework periods: Emergency services face significant demand as a result of fireworks incidents, which spikes during traditional firework periods and results in significant resource implications. However with the focus on the safe and considerate use of fireworks and additional checks in place before a person is able to purchase fireworks as part of the measures in Option 2, it is reasonable to expect that these costs will be reduced, freeing up valuable resources for Scotland's emergency services.
• Reduction in the number of firework related incidents and attacks on emergency service workers: As outlined in paragraph 7.16, in recent years there has been an increasing trend in attacks on emergency workers. Introducing this package of measures will ensure that those able to purchase and use fireworks in Scotland are responsible individuals who meet a number of checks and balances. The Bill, along with wider non-legislative actions such as public campaigns and awareness raising, seeks to bring about long term behavioural changes, including reducing instances where people deliberately misuse fireworks as weapons against emergency services.
• Reduction in firework related injuries and the associated cost to the NHS for treating these: Data relating to firework injuries in the Greater Glasgow and Clyde (GGC) NHS Health Board area covering 2008-2019^[6] estimated total health expenditure on treating firework injuries over the period was £463,583, a mean cost of £38,632 per annum. The majority of this cost (£438,775) was incurred in treating patients admitted to hospital. There is no evidence of either an upward or downward trend in the costs data. This is likely to be an underestimate as the cause of injury is not always captured in the routine administrative records and certain resource use may not be captured. By introducing the package of measures, which includes a mandatory training element on the appropriate and considerate use of fireworks, it is anticipated that fewer firework related injuries will occur as a result of accidents or improper use of fireworks.
• Improved safety for individuals attending events will be a key factor in relation to the proposed changes for pyrotechnic articles. This will extend to all of the places where pyrotechnic articles are currently known to be set off illegally such as concert venues and sports grounds, or on the way to such venues. Precise costs to the NHS and emergency services of pyrotechnic misuse at events are difficult to determine from the existing data due to the general categorisation of firework/pyrotechnic related injury covering all injuries by such devices, however we believe the potential severity of injury from even one preventable incident justifies taking action. A consequence of reducing the risk of injury from pyrotechnic articles at events will be a direct reduction of those requiring NHS treatment. There may also be modest reductions in future for the costs of stewarding or policing such events if the risk of injury from pyrotechnic articles is reduced.

Alternative Legislative Solutions

6.16 As outlined in paragraphs 69-70 of the Policy Memorandum, alternative legislative approaches were considered prior to the development of the measures outlined above which form part of Option 2. In relation to fireworks, as part of its options appraisal approach the Firework Review Group also considered restricting the use of fireworks on private property, and introducing a notification system before fireworks can be used. The initial options appraisal exercise carried out by the Group recommended that these options for change were not considered further.