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Wednesday, 24 April 2024

Ban, mandate, tax, subsidise or give a speech



Robert Colvile has a useful CAPX piece on the dead hand of regulation.


Why Britain needs a regulation revolution

There have been many academic theses written about the powers and role of government. But perhaps the neatest summary comes from an anonymous minister, quoted by former civil servant Tim Leunig.

They would explain to stakeholders begging for intervention that ultimately, there were five things they could do: ban something, mandate something, tax something, subsidise something, or give a speech about something. And of those, only the first four actually did anything.



The whole piece is well worth reading as a reminder that when it comes to cutting stifling regulations the Conservatives have achieved nothing and a Labour government is virtually certain to achieve less than that. Starmer believes in regulation, his party knows nothing else. 


Getting a handle on regulation isn’t a party-political issue. You can believe that some new regulations, or even many new regulations, are good and necessary. But even then, you should surely also want to know how much they cost, and whether they are actually working as you intended.

Regulation is arguably the least scrutinised part of government. But it may well be the most important. At the moment, Government too often sees imposing costs on business as a pain-free solution. Unless that changes, we can kiss goodbye to any hope of growth.

6 comments:

dearieme said...

I was once at a Conservative drinks do. The MP came up to me and asked my line of business. "Petrochemicals". Ah, said he "And what can the government do for you?"

I replied "Keep out of the way." He harrumphed sarcastically "Ah, a real conservative" and made off to try oiling up some other fellow.


I can remember one of our MPs when I was a lad. His qualifications were that he was a local farmer and that he'd played wing-forward for Langholm and Scotland. Innocent days, eh?

A K Haart said...

dearieme - it's certainly telling that a Conservative MP couldn't take that comment on the chin and delve deeper. Unfortunately it's not a surprise.

Tammly said...

Over regulation is the biggest reason for a low growth economy like ours and many others, particularly in the EU. The penny has not dropped with politicians and the writer must have read a bit of Thomas Sowell, who says that politicians don't measure the effects or supposed benefits of their regulatory diktats.

A K Haart said...

Tammly - that's it, once the headlines are done, politicians move on from their regulatory diktats and don't look back.

Doonhamer said...

Lawyers make / or promote laws which make work for lawyers.
Much like road contractors.

A K Haart said...

Doonhamer - yes they do, and Starmer is a lawyer.