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GOVERNMENT TO CURB ‘EXCESSIVE REGULATION’

Challenge group will consult US ‘Nudge Theory’ economist

Business Secretary Vince Cable has announced today (2 June 2010) an Action Plan aimed a bringing an end to “excessive regulation that is stifling business growth”.

He detailed the first phase of the Coalition Government action plan to reduce regulation following the Prime Minister’s commitment “re-open Britain for business”.

The action plan includes:

  • Reducing Regulation Committee – to enforce a new approach to new laws and regulations ensuring that costs are being properly addressed;
  • Immediate Review – of all regulation in the pipeline for implementation;
  • Challenge Group – to come up with innovative approaches to achieving social and environmental goals in a non-regulatory way. This team will work with experts including Richard Thaler, the US behavioural economist and Nudge Theory ‘guru';
  • “One-in, one-out” – approach designed to change the culture of government and make sure that new regulatory burdens are only brought in when reductions can be made to existing regulation.
Radical change in culture demanded

Business Secretary Vince Cable said:

“The deluge of new regulations has been choking off enterprise for too long. We must move away from the view that the only way to solve problems is to regulate.

“The Government has wide-ranging social and ecological goals including protecting consumers and protecting the environment. This requires increased social responsibility on the part of businesses and individuals.

“This is a real challenge and it will not be easy. We need to reduce regulation and at the same time meet our social and environmental ambitions. This demands a radical change in culture away from the tick box approach to regulation only as a last resort. It’s a big task but one worth striving for.”

Comment

This announcement is consistent with pre-election plans for Regulation in the Post Bureaucratic Age indicating how a future conservative administration would “cut red tape”.

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