Principles of effective regulation

Public Accounts Committee Closed Inquiry
Opened: 21 May 2021 Closed: 16 Nov 2021 Parliament page
Government and Parliament use regulation – written rules about the way a policy should be delivered - to deliver public policy objectives across many areas, particularly where government does not provide or commission services directly. Well written, effective regulation supports more efficient and effective policy delivery - including reduced costs … Read more
18 Conclusions
1 Report
1 Oral session
4 Letters
1 Event
Activity timeline 8 events
8 Nov
2021
Report published
25 Oct
2021
Correspondence
15 Sep
2021
Report published
13 Jul
2021
Correspondence
29 Jun
2021
Correspondence
28 Jun
2021
Correspondence
14 Jun
2021
Oral evidence
14 Jun
2021
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
14 Jun 2021
View on parliament.uk
Principles of effective regulation
Chris Carr · Department for Business, Energy & Industrial Strategy Dame Melanie Dawes · Ofcom Jaee Samant · Department for Business, Energy and Industrial Strategy Sarah Albon · Health and Safety Executive Sarah Munby · Department for Business, Energy and Industrial Strategy Sir James Bevan · Environment Agency
Title HC No. Published Items Response
Sixteenth Report - Principles of effective regulation HC 176 15 Sep 2021 18 Responded
Recommendations & Conclusions
18 results
2 Conclusion
Sixteenth Report - Principles of e…
The Department and regulators have been slow to follow best practice in facilitating innovation.
The Department and regulators have been slow to follow best practice in facilitating innovation. The Government’s 2019 White Paper ‘Regulation for the 4th Industrial Revolution’ found that only 29% of businesses believed that government’s approach to regulation facilitates innovation. The … Read more
Government Response
2: PAC conclusion: The Department and regulators have been slow to follow best practice in facilitating innovation. 2: PAC recommendation: Government should require regulators to engage meaningfully with businesses to … Read more
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3 Conclusion
Sixteenth Report - Principles of e…
Regulators may fail to protect citizens, businesses and the environment if they do not successfully...
Regulators may fail to protect citizens, businesses and the environment if they do not successfully adapt to major changes in their sectors. To remain effective, 6 Principles of effective regulation regulators must adapt and respond to change. Rapid technological development … Read more
Government Response
3: PAC conclusion: Regulators may fail to protect citizens, businesses and the environment if they do not successfully adapt to major changes in their sectors. 3: PAC recommendation: Government and … Read more
HM Treasury
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4 Conclusion
Sixteenth Report - Principles of e…
Regulatory bodies do not have a good enough understanding of the costs and benefits of...
Regulatory bodies do not have a good enough understanding of the costs and benefits of regulation, risking value for money. Robust analysis of the costs and benefits of regulatory activity is essential for effective regulation, value for money and accountability. … Read more
Government Response
4: PAC conclusion: Regulatory bodies do not have a good enough understanding of the costs and benefits of regulation, risking value for money. 4: PAC recommendation: In its review of … Read more
HM Treasury
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5 Conclusion
Sixteenth Report - Principles of e…
Outcomes-based regulation comes with benefits, but also presents challenges for regulators in measuring their influence...
Outcomes-based regulation comes with benefits, but also presents challenges for regulators in measuring their influence and compliance by industry. In general, setting goals and facilitating business to meet them can be both a more effective and a less burdensome approach … Read more
Government Response
1. The BBC appears complacent about the threat it faces from declining audiences. Each year people spend less time watching BBC TV and 200,000 more households choose to opt out … Read more
HM Treasury
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1 Conclusion
Sixteenth Report - Principles of e…
On the basis of a report by the National Audit Office, we took evidence from...
On the basis of a report by the National Audit Office, we took evidence from the Department for Business, Energy and Industrial Strategy (the Department), and from the Environment Agency, the Health and Safety Executive (HSE) and the Office of … Read more
Government Response
Based on a report by the National Audit Office, the Committee took evidence on 14 June 2021 from the Department for Business, Energy & Industrial Strategy. The Committee published its … Read more
HM Treasury
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6 Conclusion
Sixteenth Report - Principles of e…
We asked the Department how lessons from the regulatory response to the pandemic, including effective...
We asked the Department how lessons from the regulatory response to the pandemic, including effective cooperation between regulators, could be embedded in the regulatory system. It told us that encouraging dialogue between regulators and with ministers was important, and highlighted … Read more
Government Response
1: PAC conclusion: The response to the COVID-19 pandemic has shown what can be achieved when regulatory bodies work effectively together with a clear focus on outcomes. 1: PAC recommendation: … Read more
HM Treasury
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7 Conclusion
Sixteenth Report - Principles of e…
The Government’s 2019 White Paper ‘Regulation for the 4th Industrial Revolution’ found that only 29%...
The Government’s 2019 White Paper ‘Regulation for the 4th Industrial Revolution’ found that only 29% of businesses believed that “government’s approach to regulation facilitates innovative products and services being efficiently brought to market”.9 The Department explained that enabling innovation and … Read more
Government Response
2: PAC conclusion: The Department and regulators have been slow to follow best practice in facilitating innovation. 2: PAC recommendation: Government should require regulators to engage meaningfully with businesses to … Read more
HM Treasury
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8 Conclusion
Sixteenth Report - Principles of e…
The Department told us that the UK is ranked highly in terms of regulatory policy...
The Department told us that the UK is ranked highly in terms of regulatory policy and competitiveness by international bodies such as the OECD, the World Bank and the World Economic Forum (WEF). We heard that the Department seeks to … Read more
HM Treasury
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9 Conclusion
Sixteenth Report - Principles of e…
Rapid technological development is altering traditional business and commerce, the climate emergency is driving changes...
Rapid technological development is altering traditional business and commerce, the climate emergency is driving changes in business and consumer behaviour, and changing social attitudes are shifting citizens’ expectations of regulators. The UK’s exit from the EU has also created both … Read more
Government Response
3: PAC conclusion: Regulators may fail to protect citizens, businesses and the environment if they do not successfully adapt to major changes in their sectors. 3: PAC recommendation: Government and … Read more
HM Treasury
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10 Conclusion
Sixteenth Report - Principles of e…
Ofcom, the Environment Agency and the HSE all stated that mitigating the risks and maximising...
Ofcom, the Environment Agency and the HSE all stated that mitigating the risks and maximising the opportunities of change in their sectors as a key challenge for them as regulators. For Ofcom, new technology has disrupted traditional business models and … Read more
Government Response
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 3.2 As outlined in the consultation on Better Regulation that closed on 1 October 2021, the government … Read more
HM Treasury
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11 Conclusion
Sixteenth Report - Principles of e…
To meet these challenges and opportunities, regulators need to recruit and retain the right staff,...
To meet these challenges and opportunities, regulators need to recruit and retain the right staff, collaborate effectively both domestically and internationally, and exploit new technology to improve their efficiency and effectiveness. Ofcom has recruited a new chief technology officer from … Read more
Government Response
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 3.2 As outlined in the consultation on Better Regulation that closed on 1 October 2021, the government … Read more
HM Treasury
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12 Conclusion
Sixteenth Report - Principles of e…
The Department views its role as supporting coordination and dissemination of best practice across the...
The Department views its role as supporting coordination and dissemination of best practice across the regulatory system. However, it told us it is the responsibility of individual sponsoring departments to provide appropriate governance of regulatory bodies, including oversight of value … Read more
Government Response
The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 1.2 Bodies such as the Medicines and Healthcare products Regulatory Agency, Health and Safety Executive and Office for … Read more
HM Treasury
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13 Conclusion
Sixteenth Report - Principles of e…
Robust performance measurement and evaluation, including analysis of the costs and benefits of regulatory activity,...
Robust performance measurement and evaluation, including analysis of the costs and benefits of regulatory activity, are essential for effective regulation. They can help evidence value for money, provide insight into unintended outcomes, and help to refine interventions to improve outcomes. … Read more
Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 4.2 This work is already underway and reforming the Business Impact Target to accurately capture the impacts … Read more
HM Treasury
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14 Conclusion
Sixteenth Report - Principles of e…
We questioned Ofcom, the Environment Agency and the HSE on the extent to which they...
We questioned Ofcom, the Environment Agency and the HSE on the extent to which they are able to capture the cost of their regulations on their sectors. Ofcom told us it is stepping up its efforts to measure its impact … Read more
Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 4.2 This work is already underway and reforming the Business Impact Target to accurately capture the impacts … Read more
HM Treasury
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15 Conclusion
Sixteenth Report - Principles of e…
The government’s Business Impact Target is set each Parliament and aims to reduce the costs...
The government’s Business Impact Target is set each Parliament and aims to reduce the costs of regulation to business. Regulators must carry out Regulatory Impact Assessments (RIAs) on qualifying regulations to determine their impacts on business. Where these assessments identify … Read more
Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 4.2 This work is already underway and reforming the Business Impact Target to accurately capture the impacts … Read more
HM Treasury
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16 Conclusion
Sixteenth Report - Principles of e…
The Department told us that RIAs currently consider the cost impact of regulations without an...
The Department told us that RIAs currently consider the cost impact of regulations without an adequate assessment of the benefits. For example, the costs of complying with gambling regulations for gambling companies are captured, but the benefits of those regulations … Read more
Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 4.2 This work is already underway and reforming the Business Impact Target to accurately capture the impacts … Read more
HM Treasury
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17 Conclusion
Sixteenth Report - Principles of e…
An outcomes-focused regulatory approach is one characterised by setting overall outcomes or principles expected of...
An outcomes-focused regulatory approach is one characterised by setting overall outcomes or principles expected of the regulated industry, rather than specifying rules. This has the benefit of often being more responsive to change because the regulatory objective or outcome remains … Read more
Government Response
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 5.2 Key to ensuring a proportional approach is recognising what is necessary in each instance. There will … Read more
HM Treasury
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18 Conclusion
Sixteenth Report - Principles of e…
An outcomes-focused approach, however, can present a challenge for regulators and policymakers in measuring the...
An outcomes-focused approach, however, can present a challenge for regulators and policymakers in measuring the influence or impact of regulation and the level of compliance by industry. A regulator’s influence over the industry it regulates—for example, how well businesses comply … Read more
Government Response
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 5.2 Key to ensuring a proportional approach is recognising what is necessary in each instance. There will … Read more
HM Treasury
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Correspondence 4 letters
25 Oct 2021 Correspondence Catherine Little, Director General, Public Spending Head of Government Finance Function, re Efficiency in Government, dated 28 September 2021
Parliament page
13 Jul 2021 Correspondence from Sarah Albon,Chief Executive, Health and Safety Executive, re FURTHER INFORMATION following the Health and Safety Executive (HSE) evidence session (Monday 14 June 2021) on the principles of effective regulation, dated 6 July 2021
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29 Jun 2021 From committee Correspondence from Sir James Bevan, Chief Executive’s Office, Environment Agency, re follow up letter to Monday 14 June meeting, dated 21 June 2021
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28 Jun 2021 Correspondence from Jaee Samant, Director General Market Frameworks, Department for Business, Energy and Industrial Strategy, re Principles of Effective Regulation 14 June, dated 22 June 2021
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