Proposals for regulators’ “growth duty” and revised Regulators’ Code

In March 2013, business minister Michael Fallon proposed a “growth duty” for “non- economic regulators”, including the HSE, requiring them to take account of the impact of their activities on the economic prospects of firms they regulate. The Department for Business Innovation and Skills published draft guidance in January 2014 on what this duty will mean for those concerned. The draft guidance has been issued to help those affected by the growth duty and Parliament to understand how it is expected to work. The guidance includes information on the purpose, scope and other objectives of the growth duty.

The guidance is available at: www.gov.uk/government/uploads/system/uploads/attachment_data/file/274552/14-554-growth-duty-draft-guidance.pdf.

The Regulators’ Code became legally binding on 6 April 2014, replacing the Regulators’ Compliance Code. It provides a principles-based framework for how regulators should engage with those they regulate. Nearly all non-economic regulators, including local authorities, the HSE and fire and rescue authorities are covered by it.

The Regulators’ Code means that regulators must consider the Code when developing policies and operational procedures that guide their regulatory activities. Regulators must also consider the Code when setting standards and giving advice and guidance on regulatory activities of other regulators. If the regulator decides not to follow the Code after material evidence because the specific aspect of the Code does not apply or is outweighed by a more important consideration, the regulator does not have to follow the Code, but should keep a written record of the decision and reason.