Regulation exists to protect people, businesses, the environment and/or economic growth, stability and market operations. When proportionate, targeted, consistent, transparent and accountable, regulation delivers important benefits. However, regulation also creates costs for organisations and, if overused, inappropriately designed or poorly implemented, it can stifle competitiveness and growth.
Government has therefore rightly decided that rule-based approaches should be a last resort - used when alternatives such as market-based structures, self-regulation and other enforcement practices aren't enough. Departments have also been told to limit the cost of regulation to organisations.
Although regulation is only used when necessary, it is an important way of ensuring that public services work as desired, especially when more are being delivered locally. And where there is regulation, government needs to balance the protection of customers against prices, costs and organisational efficiencies.
Key NAO publications:
Insights we have drawn from exploratory analysis of data used by the Environment Agency as part of its regulation of storm overflows
This report will examine whether the regulation of private renting supports government’s aim to make the sector fair and affordable.
This framework is intended as a useful tool for policymakers and regulators overseeing any given market.
This investigation sets out how MHCLG is overseeing the remediation of dangerous cladding under its Building Safety Programme.
This report sets out the challenges facing the water industry in England and assesses how Defra is tackling them.
The NAO is publishing a suite of Departmental Overviews, one for each government department and a selection of cross-government issues, to assist House of Commons Select Committees and Members of Parliament.
This report examines the extent to which gambling regulation protects people from gambling‑related harms and addresses emerging risks.
This report examines how effectively Ofgem has used electricity network price controls to protect consumers and achieve government’s environmental goals.
This report sets out the facts about the government’s support of shale gas development in England.
This report examines the effectiveness of regulations to ensure that food is safe and is what it says it is.
