Publication of first RPC Report “Reviewing Regulation”
Download the full report “Reviewing Regulation” PDF 393kb
The RPC today publishes its first report “Reviewing Regulation“, which
summarises the results of its independent, real-time scrutiny of new regulatory
proposals out to consultation between December 2009 and May 2010, with 107
subjected to detailed review of the quality of evidence and analysis. It has
published 22 opinions where it found major issues.
These first findings show that a good proportion of regulatory proposals are
well supported by detailed analysis and evidence. However a number of them lack
analytical rigour, are poorly presented and appear to be produced as a result of
being required to do so, rather than as a means of open and thorough
investigation and inquiry.
Commenting on the report, Mr Gibbons RPC chair said: “The RPC’s first six months of
operation demonstrate the value of independent challenge – to business,
consumers, employees and the general public alike. No-one benefits from poor
regulation, particularly in tough economic times, and the RPC’s independent
scrutiny of regulatory proposals so far have found that over one in five failed
to make the case for intervention. We make six simple recommendations which
should help officials make a stronger case. For example, policy-makers should
not presume that regulation is the answer to the problem they are trying to
solve and, where regulation is necessary and where all other options have been
considered, they must produce reliable estimates of costs and benefits. It is
not enough to produce apparently thought-free tick box exercises to obtain the
necessary approval; policy proposals must be presented with a case that
demonstrates how the regulations will achieve what they’re supposed to and fully
identify and justify any burdens on the economy and society.”
‘Reviewing Regulation’ makes six recommendations to contribute to improving the
decision-making process with respect to regulation in the UK:
- Don’t presume that regulation is the answer
- Consider all the options – and provide robust analysis of all alternatives,
including the ‘do nothing’ option
- Provide substantive evidence – and make sure it is properly referenced and
sourced
- Produce reliable estimates of costs and benefits – assess all risks, costs,
uncertainties and benefits appropriately
- Assess non-monetary impacts thoroughly
- Explain and present results of analysis clearly
Further details on the recommendations are contained in the report.
The issues examined range from the inclusion of aviation in the EU Emissions
Trading System to proposed changes to street trading and pedlary. They cover
regulations affecting the public sector, the third sector, consumers, and
businesses, with annual costs ranging from under a million per year to hundreds
of millions.
For each proposal, the RPC has examined the case for government intervention,
including whether both the costs and benefits have been properly assessed and
whether other non-regulatory options were analysed and considered. Where the RPC
had concerns over the robustness of the evidence and analysis presented it
commented publicly. It does not however comment on the overall policy objective
which is a matter for Ministers.