HM Treasury has published its new approach on ensuring regulators and regulation supports growth.
The paper focusses on the full UK regulatory system – including the finance, business, energy and environmental sectors. It states that the UK regulatory landscape is not functioning as effectively as it should, often holding back growth and inhibiting investment with high administrative costs arising from disproportionate reporting requirements, for example. Overall, businesses find the current regulatory approach to be too risk averse, with regulation too complex and duplicative, meaning firms suffer from a lack of certainty and predictability from regulators.
HM Treasury’s Action Plan sets out the following steps to overhaul the current system:
- Tackling complexity and the burden of regulation
- Reducing uncertainty across the regulatory system
- Challenging and shifting excessive risk aversion