UK may scrap watchdog that exposes flawed business regulations
The UK Government is considering the removal of an independent watchdog that checks the cost and quality of new regulations. The Regulatory Policy Committee (RPC) has repeatedly found flaws in official impact assessments over the past three years. Now, business leaders are warning that scrapping the body could harm investment and transparency.
The Department for Business and Trade is reviewing whether to abolish the RPC. This independent group currently evaluates how much new regulations cost businesses and whether Government assessments are thorough enough. Its reports have shown that many recent proposals lacked proper analysis or clear financial justifications.
Business groups, including the CBI and the Federation of Small Businesses (FSB), have raised concerns. They argue that without the RPC, there will be no neutral body to challenge poorly designed rules. Small firms alone already spend 379 million hours a year meeting regulatory demands. The RPC's role has often put it at odds with ministers, as its findings can be inconvenient for policymakers. Yet supporters say its scrutiny is vital for keeping regulation fair and evidence-based. If the Government believes its rules support growth, they argue, it should welcome independent checks rather than remove them. Removing the RPC could also damage the UK's standing as a reliable place to invest. Investors value stable, predictable regulation—qualities that depend on transparent oversight.
A final decision on the RPC's future has not yet been made. If the committee is scrapped, businesses will lose a key safeguard against poorly assessed regulations. The move would leave lawmakers without an independent body to verify whether new rules are justified or affordable.
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