Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Regulators may fail to protect citizens, businesses and the environment if they do not successfully...
Conclusion
Regulators may fail to protect citizens, businesses and the environment if they do not successfully adapt to major changes in their sectors. To remain effective, 6 Principles of effective regulation regulators must adapt and respond to change. Rapid technological development is disrupting traditional business models, the climate emergency is driving changes in business and consumer behaviour, changing social attitudes are shifting citizens’ expectations of regulators, and the UK’s exit from the EU has created new risks and opportunities as UK regulators take on new roles and responsibilities previously performed at EU level (including setting laws and regulations). To respond effectively, regulators must recruit and retain the right staff, collaborate effectively with other regulators both domestically and internationally, and exploit new technology to improve their efficiency and effectiveness. The extent of the challenge is considerable, and regulators’ efforts to meet this challenge must be supported by the right strategic and legislative frameworks, as well as the necessary skills and capacity. Recommendation: Government and regulators should work together to ensure that regulatory frameworks are responsive, and that regulators themselves are well equipped, to be able to match the challenges and opportunities provided by the UK’s departure from the EU.
Government Response
Not Addressed
HM Government
Not Addressed
3: PAC conclusion: Regulators may fail to protect citizens, businesses and the environment if they do not successfully adapt to major changes in their sectors. 3: PAC recommendation: Government and regulators should work together to ensure that regulatory frameworks are responsive, and that regulators themselves are well equipped, to be able to match the challenges and opportunities provided by the UK’s departure from the EU. 3.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 3.2 As outlined in the consultation on Better Regulation that closed on 1 October 2021, the government has set out five principles that will underpin the approach to regulation to ensure it benefits the British people and takes advantages of the new opportunities from leaving the EU: • regulation will have a sovereign approach that tailors how rules are set to boost growth for the UK; • the UK will lead from the front by acting flexibly and supporting the development of new technologies; • the way regulation is developed will be proportional and responsive; • by analysing regulations to ensure they work effectively in practice, the government will ensure regulation works; and • high standards will be set at home and globally. 24 • the responses to the consultation are currently being considered and the government’s response will be published in due course.