Source · Select Committees · Public Accounts Committee
Recommendation 18
18
An outcomes-focused approach, however, can present a challenge for regulators and policymakers in measuring the...
Conclusion
An outcomes-focused approach, however, can present a challenge for regulators and policymakers in measuring the influence or impact of regulation and the level of compliance by industry. A regulator’s influence over the industry it regulates—for example, how well businesses comply with standards—can be difficult to measure, particularly if there are not specific rules that can be easily monitored.38 For this reason, it is imperative that regulators identify what data they need, collect this robustly and systematically, use it to monitor progress and have the power to act on it effectively. Failing to collect reliable data, or being unable to act on data effectively, can undermine a regulator’s objectives.39 One London borough submitted evidence to us highlighting how the level of fines on water companies is not sufficient in deterring them from discharging raw sewage into the environment above the levels permitted by the Environment Agency.40 32 Competition and Markets Authority, Regulation and Competition: A Review of the Evidence, January 2020 33 Qq 67–70 34 NAO Report, page 31 35 Q 36 36 Centre for the Study of Existential Risk, University of Cambridge 37 Qq 65, 84 38 Q 46; NAO Report, pages 21 & 26 39 NAO Report, pages 15 & 19 40 London Borough of Hackney 14 Principles of effective regulation
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