Ministers Face Backlash Over Plans to Scrap Regulatory Watchdog
The government is facing mounting pressure to abandon reported plans to abolish the Regulatory Policy Committee, the independent body that scrutinizes the cost of new regulations on businesses. Shadow Business Secretary Andrew Griffith has warned that scrapping this crucial watchdog would represent a serious mistake that could further burden already struggling enterprises across the United Kingdom.
Red Tape Strangling British Business
Recent data from the Federation of Small Businesses reveals the staggering scale of regulatory compliance facing entrepreneurs and small firms. According to their survey, these businesses collectively spend approximately 379 million hours each year navigating government regulations and requirements. This substantial administrative burden comes at a time when operational costs are already skyrocketing for companies of all sizes throughout the nation.
The Regulatory Policy Committee serves as the independent arbiter that calculates the true economic impact of proposed regulations and evaluates whether government impact assessments provide accurate and comprehensive analysis. Without this oversight mechanism, there would be no objective body to question lawmakers about the potential consequences of new regulatory measures before they become law.
Watchdog Holding Government Accountable
The lean but effective Regulatory Policy Committee works diligently to ensure that the costs and administrative burdens imposed on businesses are accurately measured and transparently reported to Parliament during the legislative process. Their recent investigations have uncovered significant deficiencies in government impact assessments over the past three years, raising serious questions about the quality of regulatory analysis conducted by various departments.
Specific examples highlighted by the committee include the Employment Rights Bill, where their examination found that government costings relied on "weak evidence, inadequate appraisal of policy options and insufficient analysis of costs to employers." Similarly, Defra's Wet Wipes regulations in 2025 were criticized for lacking clear evidence and failing to adequately assess non-regulatory alternatives. The same pattern emerged with Rishi Sunak's Tobacco and Vapes Bill, which received similar criticism from the independent watchdog.
Business Community Expresses Alarm
A powerful coalition of Britain's most influential business organizations has united in opposition to the potential abolition of the Regulatory Policy Committee. The Confederation of British Industry, Federation of Small Businesses, Institute of Directors, MakeUK, and British Chambers of Commerce have collectively written to the Business Secretary to express their profound concern about the reported plans.
These organizations, representing enterprises ranging from small startups to major corporations, view the Regulatory Policy Committee as an essential component of the United Kingdom's legislative framework. They understand that without independent scrutiny, the true impact of new regulations on business operations often remains concealed until implementation, when it becomes too late to make meaningful adjustments.
Undermining Investment Confidence
The potential scrapping of the Regulatory Policy Committee raises fundamental questions about the government's commitment to transparent governance and evidence-based policymaking. While previous administrations may have found the committee's independent assessments uncomfortable, this objectivity represents precisely why the watchdog must remain operational.
If ministers proceed with abolishing this independent verification mechanism, they risk further undermining the United Kingdom's reputation as a stable and predictable environment for domestic and international investment. As Andrew Griffith pointedly asks: "If the Government is confident its regulations are pro-growth, why fear independent verification? What do they have to hide?"
The Regulatory Policy Committee continues to perform vital work that benefits both businesses and the broader economy by ensuring regulatory decisions undergo proper scrutiny before implementation. Its potential removal would represent a significant step backward for regulatory transparency and accountability in British governance.
