Source · Select Committees · Public Accounts Committee
Recommendation 17
17
An outcomes-focused regulatory approach is one characterised by setting overall outcomes or principles expected of...
Conclusion
An outcomes-focused regulatory approach is one characterised by setting overall outcomes or principles expected of the regulated industry, rather than specifying rules. This has the benefit of often being more responsive to change because the regulatory objective or outcome remains the same even where the process or activity being regulated has changed. This was observed during the COVID-19 pandemic, for example with a rolling review process for vaccine approval (as set out in paragraph 13). An outcomes- focused approach can also be less burdensome for business in general.34 The HSE told us that it works with businesses to set outcomes, and provided that a business shows that it can meet those outcomes, the HSE does not try to second-guess how the business should work and specifically what it should do.35 We also received academic evidence as part of our inquiry which argued that good regulation comprises a broad outcomes-focused approach combined with detailed guidance.36 We were surprised that not all regulators have an outcomes-over-process model embedded in how they operate.37
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 5.2 Key to ensuring a proportional approach is recognising what is necessary in each instance. There will be sectors and circumstances where market freedom and an outcomes- based regulatory approach is preferable, and others when a more prescriptive rules-based approach is required. The government will use non-regulatory options to deliver the desired outcomes where it can, while acting decisively to put in place strong rules where they are needed. 25 5.3 The consultation on “Reforming the framework for better regulation” considers a number of proposals to address achieving this balance, including moving to a common law approach to regulation and the adoption of a proportionality principle. The government will review all of the consultation responses received and use them to inform decisions about what actions will be taken next. A government response to the consultation will be published in late 2021 detailing which proposals the government has decided to take forward, and why. 26