‘What Do They Have to Hide?’ Ministers Must Not Scrap Regulatory Watchdog

Why It Matters

Without an independent cost‑benefit check, new regulations could impose hidden burdens on businesses and erode investor confidence in the UK market.

Key Takeaways

• RPC evaluates economic cost of UK regulations.
• Small firms lose 379 million hours annually to red tape.
• Recent RPC reports expose weak impact assessments.
• Business coalitions urge government to keep RPC.
• Scrapping RPC could damage UK's investment appeal.

Pulse Analysis

Regulatory burden has become a headline issue for UK enterprises, with the Federation of Small Businesses estimating that small firms collectively spend 379 million hours each year navigating compliance requirements. Those hours translate into lost productivity, higher operating costs, and reduced competitiveness, especially for startups that lack extensive legal resources. In this environment, an independent body that can objectively measure the true cost of regulation is not a luxury but a necessity for maintaining a healthy business ecosystem.

The Regulatory Policy Committee serves that purpose by conducting detailed cost‑benefit analyses of proposed legislation. Its recent reports have flagged serious deficiencies in government impact assessments, such as the Employment Rights Bill’s reliance on weak evidence and the Wet Wipes regulations’ failure to explore non‑regulatory alternatives. By publishing transparent cost estimates and highlighting methodological flaws, the RPC pushes policymakers to refine proposals before they become law, ultimately safeguarding firms from unintended financial strain.

Political pressure to eliminate the RPC has sparked a coordinated response from leading business organisations, including the CBI, FSB and British Chambers of Commerce. They argue that dismantling the watchdog would undermine the UK’s reputation as a predictable, investment‑friendly jurisdiction. Retaining the RPC not only ensures accountability but also signals to domestic and foreign investors that the government values evidence‑based regulation. In a post‑Brexit landscape where regulatory clarity is paramount, preserving independent scrutiny is essential for sustaining growth and confidence in the UK market.