Peter Kyle: Business Groups Urge Against Scrapping Regulatory Watchdog

Business groups are mounting a robust defense of the Regulatory Policy Committee (RPC), warning Business Secretary Peter Kyle against abolishing the watchdog as part of a wider government deregulation drive. The intervention, involving eight major industry bodies including the Confederation of British Industry and UK Hospitality, underscores concerns that weakening independent scrutiny of new regulations could stifle economic growth and increase costs for businesses. The Department for Business and Trade confirmed it is “considering the role” of the RPC, a move first reported by City A.M.

Independent Scrutiny Under Threat

Established in 2009, the RPC provides an independent assessment of the quality of regulatory impact assessments (RIAs) produced by government departments. These RIAs are intended to quantify the costs and benefits of proposed regulations, ensuring policymakers are aware of the potential economic consequences. The RPC assigns a ‘red’, ‘amber’, or ‘green’ rating to each RIA, alongside detailed quality indicators, offering a critical, public evaluation of the government’s analytical work. The RPC’s website details its methodology and published opinions.

The potential axing of the RPC comes amid a broader push for deregulation led by Prime Minister Rishi Sunak, who recently criticized what he termed a “cottage industry of checkers and blockers” hindering policy implementation. In a speech on March 13, 2026, Sunak outlined plans to “rewire the British state”, suggesting a streamlining of regulatory processes. However, critics argue that dismantling independent oversight could lead to poorly considered regulations with unintended negative consequences.

Industry Concerns: ‘Marking Their Own Homework’

The joint letter from industry groups argues that the RPC’s independent role is “fundamental to the government’s… regulation framework.” They express concern that without the RPC, departments would effectively be “marking their own homework,” potentially leading to an underestimation of regulatory burdens and a lack of accountability. The letter emphasizes the RPC’s cost-effectiveness, noting it operates on an advisory basis at minimal expense.

The British Chambers of Commerce, one of the signatories, has been a vocal advocate for reducing the regulatory burden on businesses, particularly compact and medium-sized enterprises (SMEs). According to the BCC’s most recent quarterly economic survey, regulatory costs remain a significant concern for businesses, impacting investment and growth.

Shadow Business Secretary Weighs In

Andrew Griffith, Labour’s Shadow Business Secretary, echoed the industry groups’ concerns, comparing the potential abolition of the RPC to scrapping the Office for Budget Responsibility (OBR). The OBR provides independent forecasts of the UK economy and public finances, and its removal would be widely seen as undermining fiscal transparency. Griffith argued that eliminating the RPC would be particularly damaging at a time when businesses are already struggling with a complex regulatory landscape.

The UK economy has experienced sluggish growth in recent quarters. According to the Office for National Statistics, GDP grew by just 0.1% in the three months to January 2026. This slow growth has prompted calls for measures to boost business investment and productivity, and the debate over the RPC’s future is taking place against this backdrop.

The Deregulation Drive: A Broader Context

The government’s deregulation push is part of a wider effort to stimulate economic growth and attract investment. Ministers argue that overly burdensome regulations stifle innovation and competitiveness. However, critics contend that regulations are often necessary to protect consumers, workers, and the environment. The debate highlights the inherent trade-off between economic freedom and social protection.

Peter Kyle, appointed Business Secretary in September 2025 following a cabinet reshuffle by Keir Starmer, has signaled his commitment to economic growth. He recently undertook a visit to the US and China, seeking to strengthen trade ties and attract foreign investment. His trip included meetings with US technology advisors in preparation for a potential state visit by Donald Trump.

What Happens Next?

The Department for Business and Trade has stated that no final decisions have been made regarding the RPC’s future. The department is currently reviewing the regulatory landscape as part of its action plan launched last year, aimed at reducing the burden on businesses. The outcome of this review will likely determine the fate of the RPC. Industry groups are lobbying ministers to retain the watchdog, emphasizing its value as an independent source of scrutiny. Further announcements are expected in the coming weeks as the government finalizes its plans for regulatory reform. The timeline for any potential changes remains unclear, but the debate underscores the government’s commitment to reshaping the UK’s regulatory environment.