For the first time in a generation, the UK has the freedom to develop and implement rules that put UK businesses and consumers first, freeing businesses from excessive bureaucracy and lowering costs for consumers , while stimulating competition, innovation and growth throughout the economy.
The consultation launched today marks a first response to the report of the Independent Working Group on Innovation, Growth and Regulatory Reform (TIGRR) commissioned by the Prime Minister, exploring a number of recommendations on the regulatory framework of the UK.
This includes finding ways to do without unnecessary paperwork that no longer meets the needs of the UK, including those that the UK inherited when it was a former EU member – for example by reintroducing a way to “compensate” for new regulations, such as the One-In-Two-Out Method whereby to introduce new regulations, unnecessary regulations would have to be removed.
To enable innovative companies to safely test breakthrough ideas, the government could also seek to make more use and increase the impact of ‘sandboxes’, where certain regulations are lifted to test new products in a real environment, under the supervision of the regulator – this was another reform recommended by TIGRR.
Another TIGRR proposal to move away from the EU’s excessive use of the ‘precautionary principle’ inherited from the UK and to adopt a ‘proportionality principle’ in our regulatory framework has been set out. This would mean that regulations are reset to focus on results, not process, and be proportionate to the issues and impacts on businesses and people.
The proposals presented today also relate to regulation throughout its lifespan, in particular:
- Changes to the new rule-making process, such as introducing a more stringent review of proposed regulations within government prior to implementation – helping to ensure regulations do not impose undue burdens on businesses or consumers, or by removing bad regulatory proposals before they become law.
- How to best measure their impact, with a faster mandatory review of regulations two years after their introduction, rather than after five years – repeal or adjust them faster when they don’t work as they should, are too burdensome or cost too much.
- Review the role of regulators, including imposing a duty on them to promote innovation and competition, ensuring that they contribute to the UK’s economic growth while enforcing the rules and protecting the rights of individuals.
Lord David Frost, Minister of State at the Cabinet Office, said:
Now is the time to think boldly about how we regulate, as we seize our new opportunities as an independent nation.
For the first time in a generation, we are free to implement rules that put the UK first. This is the next step in pushing forward ambitious reform, following the work of the Working Group on Innovation, Growth and Regulatory Reform.
Our job is to help people and businesses thrive across the UK. That was it, taking back control. Reforming the way we regulate will be an important part of delivering these services to people.
Business Secretary Kwasi Kwarteng said:
Taking back control means framing regulation in a way that works best for UK businesses, workers and our economy at large.
As an independent trading nation once again, we will use our new freedoms to promote competition, unleash innovation, and enable the development of new technologies – without imposing heavy burdens on business.
By taking a more agile approach, tailored to our national interest, we can maintain our high standards and solidify the UK’s status as an attractive place to start and grow a business.
The consultation sets out five principles that will underpin the government’s approach to regulation to ensure it benefits the British people:
- Sovereign Approach: The UK will use its freedoms to take a tailored approach to rule making in a way that drives growth and benefits the British people
- Act head-on: we will act with agility to support the development of new technologies
- Proportionality: Where possible, the government will use non-regulatory options, allowing markets to move dynamically, while taking decisive action to put tough rules in place where they are needed
- Recognize what works: Regulations will be analyzed in depth to make sure they work in the real world.
- Setting high standards nationally and globally: UK will pursue strong regulatory diplomacy and help solve global issues