Recommendation 3

It can be burdensome, complex and difficult for businesses to navigate and cooperate with multiple regulators across government. Businesses can face challenges when they must deal with multiple regulators due to gaps, overlapping jurisdictions and trade-offs in regulation. We heard that some departments are trialling a ‘lead regulator model’ in certain sectors. HM Treasury highlighted the Nuclear Regulation Taskforce recommendation for a lead regulator, which the government has accepted. The Department for Environment, Food and Rural Affairs (Defra) has also been using the new model following the Corry review, with a lead environmental regulator for the lower Thames crossing. In comparison, government expects to create a new single water regulator following the Cunliffe review, and the Payment System Regulator’s merging into the Financial Conduct Authority was instigated in the Action Plan. recommendation DBT should put in place arrangements to review how effective the different regulatory delivery models are, using the findings to improve the wider UK regulatory landscape and inform consideration of merging regulators. Such arrangements must include feedback from industrial sectors and consumer groups.