Business Groups Issue Urgent Warning Against Scrapping Regulatory Watchdog
In a significant intervention, some of Britain's most influential business organizations have strongly advised Business Secretary Peter Kyle against dismantling the Regulatory Policy Committee (RPC). These groups emphasize that the body plays an absolutely fundamental role in evaluating how bureaucratic red tape affects British companies. This development follows confirmation from the Department for Business that ministers are actively reviewing the watchdog's position within the government's framework.
Unprecedented Joint Appeal from Industry Leaders
A coalition of eight major industry bodies, including all members of the prominent 'Big Five' business groups, has taken the unusual step of sending a joint letter to Peter Kyle. They expressed serious concerns about potential plans to abolish the RPC as part of the government's broader deregulation initiative. The letter states clearly: "We view the RPC as a vital component of the UK's legislative architecture, providing independent scrutiny of the impact assessments which should accompany most government legislation."
The business leaders further argued that while the RPC's findings might sometimes make uncomfortable reading for governments of any political stripe, its function as an objective arbiter remains fundamental to the integrity of the regulatory framework. They stressed that the committee performs this crucial role at minimal cost and operates strictly on an advisory basis.
The Critical Function of Independent Regulatory Scrutiny
Established in 2009, the Regulatory Policy Committee serves as an independent body that examines government regulations. Its primary responsibility involves providing an impartial assessment of the feasibility of regulatory impact assessments prepared by civil servants for new regulations. The RPC evaluates the analytical quality supporting these assessments, assigning each document a clear 'red' or 'green' rating along with detailed quality indicators ranging from 'good' to 'very weak'.
However, ministers are currently considering whether to eliminate this arms-length body as they explore methods to implement Prime Minister Keir Starmer's vision for a comprehensive restructuring of the British state. This review occurs amid growing concerns that the Prime Minister faces challenges in advancing his policy agenda effectively.
Political Context and Business Concerns
Last week, Prime Minister Starmer delivered a speech criticizing what he described as a "cottage industry of checkers and blockers" who he claimed use taxpayer funds to obstruct ministerial priorities. He told staff at consumer giant Reckitt: "People join the civil service because they want to serve their country by delivering change. Yet somehow – we take that energy, that pride, that patriotism, and we misdirect it into blocking. Well that's got to end, no more. We were elected to take on blockers and deliver change and that is what we'll do."
In their robust defense of the RPC, the business groups warned the government against making the committee a casualty of this drive. They expressed particular concern that without the RPC, government departments would essentially be "marking their own homework" regarding the consequences of new policies. This sentiment was echoed by Shadow Business Secretary Andrew Griffith, who compared abolishing the RPC to "the Chancellor scrapping the Office for Budget Responsibility."
Griffith added: "At a time when British businesses, particularly our small high street enterprises, are drowning in red tape, removing one of the few bodies which holds ministers to account for the cost of regulation would be deeply damaging."
Government Response and Ongoing Review
A spokesperson for the Department for Business stated: "We are overhauling the current complex system of regulation to reduce the burden on businesses through the action plan we launched last year. We are considering the role of the Regulatory Policy Committee, but no final decisions have been made as part of our plan to increase productivity and drive economic growth."
The business groups' letter was signed by prominent organizations including UK Hospitality, the Confederation of British Industry, and the British Chambers of Commerce, representing a broad cross-section of the UK's commercial landscape. Their unified stance highlights the significant apprehension within the business community about potential changes to regulatory oversight mechanisms.
