Craig Whittaker is Member of Parliament for Calder Valley.
Smart regulation is a critical component of a successful economy. Any Conservative government has an obligation to get it right. Regulations must be balanced and as light-touch as possible to foster a pro-growth environment. Regulators must enforce the rules of the economic game – which are set by politicians – and protect consumers, the environment, and fairness in a market.
But, regulations must work for, and regulators must work with, the industries they regulate to enable industries to flourish. If one or both are unresponsive or unnecessarily obstructive, then it creates damaging consequences for businesses and economic growth.
Getting the balance between regulator and industry is the key to unlocking responsible growth. Today, in many sectors, this balance has been tilted in favour of excessive regulation.
This is why the Department for Business and Trade’s call for evidence into smart regulation and regulators is much needed and should be welcomed by all who want to see British businesses thrive.
Take the betting and gaming sector. The Gambling Commission – the regulator – all too often takes a heavy-handed approach to their work, and at times strays beyond the boundaries set for them by the Government.
One recent example of this is the recently closed Gambling Commission consultation on the Government’s gambling White Paper’s proposed affordability checks. Lucy Frazer’s White Paper got the balance right, recognising that the majority of punters are responsible punters.
The White Paper balances the important duty to protect gamblers from harm without infringing on the rights of individuals to spend their money how they choose, or taking a heavy-handed approach with the UK’s important betting and gaming industry.
On the issue of affordability checks for customers, the White Paper favoured frictionless checks over the idea of intrusive submission of pay slips or other types of personal documents.
Not only are document-based affordability checks invasive for customers, but they threaten to seriously damage an industry that makes a sizeable contribution to our economy – £7.1 billion to UK Gross Value Added in 2021-22 according to Ernst & Young. In this area, rules that fail the smart regulation test could drive customers to the unregulated black market where they benefit from no protection at all.
So, why has the Gambling Commission just consulted on a form of affordability checks that many say would almost inevitably lead to customers being forced to submit their payslips to gambling operators?
Part of the answer to smart regulation and smart regulators already exists: the Regulators Code. It is the framework which should govern the work of the Gambling
Commission and all other watchdogs. The code, which came into statutory effect in 2014, states that the purpose of a regulator is to apply a ‘proportionate, consistent and targeted regulatory activity through the development of transparent and effective dialogue and understanding between regulators and those they regulate.’
This is the type of smart dialogue the betting and gaming industry should be able to have with the Gambling Commission. It is what will lead to smart regulation that protects people from gambling harms, and benefits the 99 per cent of responsible gamblers, the betting and gaming industry, and the wider economy.
The Gambling Commission has many more consultations left to run as it assists Ministers in implementing the White Paper. But, the burden is on them to make sure that the regulations they draft and consult on are strictly within the spirit and intentions of the White Paper as laid out by elected Ministers.
If not, the consequences for our economy could be profound. We cannot afford to miss out on responsible economic growth which could be unlocked through a proper partnership between this industry and its regulator.
The Department of Business and Trade’s consultation process on smart regulation is vitally important. It will set the priorities of regulators for years to come. Conservatives have a duty to create a new settlement of smart regulation that strikes the right balance – putting Conservative economic values into action and unlocking growth.
We know that businesses need certainty to invest and drive growth. It is smart to have regulators who provide this certainty through a balanced and fair approach to their work, informed by a genuine and good-faith dialogue with businesses.
Businesses also need to know that if regulators fall short, Ministers will step in and guarantee that the political direction they have set it is implemented. This is what the UK needs, and I look forward to seeing the result of this much-needed review.
Craig Whittaker is Member of Parliament for Calder Valley.
Smart regulation is a critical component of a successful economy. Any Conservative government has an obligation to get it right. Regulations must be balanced and as light-touch as possible to foster a pro-growth environment. Regulators must enforce the rules of the economic game – which are set by politicians – and protect consumers, the environment, and fairness in a market.
But, regulations must work for, and regulators must work with, the industries they regulate to enable industries to flourish. If one or both are unresponsive or unnecessarily obstructive, then it creates damaging consequences for businesses and economic growth.
Getting the balance between regulator and industry is the key to unlocking responsible growth. Today, in many sectors, this balance has been tilted in favour of excessive regulation.
This is why the Department for Business and Trade’s call for evidence into smart regulation and regulators is much needed and should be welcomed by all who want to see British businesses thrive.
Take the betting and gaming sector. The Gambling Commission – the regulator – all too often takes a heavy-handed approach to their work, and at times strays beyond the boundaries set for them by the Government.
One recent example of this is the recently closed Gambling Commission consultation on the Government’s gambling White Paper’s proposed affordability checks. Lucy Frazer’s White Paper got the balance right, recognising that the majority of punters are responsible punters.
The White Paper balances the important duty to protect gamblers from harm without infringing on the rights of individuals to spend their money how they choose, or taking a heavy-handed approach with the UK’s important betting and gaming industry.
On the issue of affordability checks for customers, the White Paper favoured frictionless checks over the idea of intrusive submission of pay slips or other types of personal documents.
Not only are document-based affordability checks invasive for customers, but they threaten to seriously damage an industry that makes a sizeable contribution to our economy – £7.1 billion to UK Gross Value Added in 2021-22 according to Ernst & Young. In this area, rules that fail the smart regulation test could drive customers to the unregulated black market where they benefit from no protection at all.
So, why has the Gambling Commission just consulted on a form of affordability checks that many say would almost inevitably lead to customers being forced to submit their payslips to gambling operators?
Part of the answer to smart regulation and smart regulators already exists: the Regulators Code. It is the framework which should govern the work of the Gambling
Commission and all other watchdogs. The code, which came into statutory effect in 2014, states that the purpose of a regulator is to apply a ‘proportionate, consistent and targeted regulatory activity through the development of transparent and effective dialogue and understanding between regulators and those they regulate.’
This is the type of smart dialogue the betting and gaming industry should be able to have with the Gambling Commission. It is what will lead to smart regulation that protects people from gambling harms, and benefits the 99 per cent of responsible gamblers, the betting and gaming industry, and the wider economy.
The Gambling Commission has many more consultations left to run as it assists Ministers in implementing the White Paper. But, the burden is on them to make sure that the regulations they draft and consult on are strictly within the spirit and intentions of the White Paper as laid out by elected Ministers.
If not, the consequences for our economy could be profound. We cannot afford to miss out on responsible economic growth which could be unlocked through a proper partnership between this industry and its regulator.
The Department of Business and Trade’s consultation process on smart regulation is vitally important. It will set the priorities of regulators for years to come. Conservatives have a duty to create a new settlement of smart regulation that strikes the right balance – putting Conservative economic values into action and unlocking growth.
We know that businesses need certainty to invest and drive growth. It is smart to have regulators who provide this certainty through a balanced and fair approach to their work, informed by a genuine and good-faith dialogue with businesses.
Businesses also need to know that if regulators fall short, Ministers will step in and guarantee that the political direction they have set it is implemented. This is what the UK needs, and I look forward to seeing the result of this much-needed review.