Regulatory Impact Assessments (Legislative Scrutiny)

Jim Shannon Excerpts

Wednesday 2nd September 2020 Commons Chamber

[Sir Christopher Chope (Christchurch) (Con)]

I shall start with some quotes from my constituents about the Government:

“The most inept and incompetent administration in my lifetime.”

“Incoherent and indecisive.” “Authoritarian and arrogant.” “Inconsistent and incomprehensible.” “Socialist in all but name.” As these criticisms become increasingly difficult to rebut, it is indeed essential that the Prime Minister gets a grip. The constructive purpose of this debate is to remind the Government that one key tool to enable them to get a grip is to use regulatory impact assessments as part of the policy-making process.

A regulatory impact assessment is a well-established, internationally acclaimed toolkit for good policy making. It facilitates transparency and public accountability, promotes democratic discussion by enabling potential possible policy options to be evaluated and compared. It prevents the inconsistency that arises from knee-jerk reactions and policies being developed on the hoof.

It helps to ensure that sudden changes are the exception and are made in response to changes in hard evidence rather than in response to the chorus of a single-issue pressure group—and I think it is probably fair to say that the covid alarmists are the most successful pressure group in British history. If, for the past six months, the Government had been using this toolkit, it would not have been possible for commentators to observe, as one did on Sunday:

“Britain has become a paradise for those who like to answer questions with ‘rules is rules’; even when they’re clearly made up on the spot or nonsensical.”

Allowing beard and eyebrow trimming for men but not eyebrow treatments for women was but one ridiculous example.

Most fair-minded observers supported the Government’s initial response to the covid-19 pandemic. The Government had no option but to make their priority ensuring that our hospitals were able to treat all those seriously ill as a result of covid-19. Our NHS was not as well-prepared as it would have been if the recommendations of Exercise Cygnus had been implemented. Cygnus was a brilliant initiative to war-game a serious epidemic of respiratory illness in order to identify where investment was needed to fill the gaps and thereby ensure an effective response. Tragically, Public Health England did not learn the lessons identified and failed to put the recommended preparatory work in place. We, the public, have been denied access to the full results. It remains a mystery to me as to why the Government are so defensive about the whole matter—and have indeed been dodging parliamentary questions that I have put down on the subject.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman often brings things to the House that are very important, and this is certainly one of them. Does he agree that impact assessments, if produced reliably, can form a critical element of the better regulation agenda? Regulatory impact assessments need to be the right foundation and the right basis to ensure that legislative scrutiny is not just a checklist but is instead an effective mechanism. I think that that is what he was referring to.

[Sir Christopher Chope]

The hon. Gentleman has given a brilliant summary of my Adjournment thesis. He is saying that this should not be a tick-box exercise but that clear evidence should be presented that can then lead to proper debate and facilitate scrutiny, and that is what this is all about. I hope the Government are still wedded to that, because their better regulation unit has had consultations and is, I think, still taking the line that we need to have proper regulatory impact assessments. The purpose of this debate is to try to get some more assurance from the Government that they are going to apply these principles not just to covid-19 but to other regulatory measures that are, at the moment, being brought in with far too insufficient scrutiny.

Tomorrow it will be six months since the Department of Health and Social Care policy paper on coronavirus was published. This action plan, as it became, on which the Coronavirus Act 2020 was based, envisaged four phases: contain, delay, research and mitigate. The delay phase was to

“slow the spread in this country, if it does take hold, lowering the peak impact and pushing it away from the winter season”.

Because of the emergency timetable, the legislation had the sketchiest of regulatory impact assessments, without any cost-benefit analysis. But who would have thought that none of the regulations being made under that primary legislation would be properly evaluated before implementation? I certainly hoped that that would happen, but it has not.

The basic steps in the RIA process should involve consultation and an assessment of the nature and extent of the problems to be addressed. There should be a clear statement of the policy objectives and goals of the regulatory proposal, which should include the enforcement regime and strategy for ensuring compliance. Alternative courses of action should be identified, including any non-regulatory approaches considered as potential solutions to the identified problem. There should also be a clear outline of the benefits and costs expected from the proposal and identified alternatives. The conclusion should not only identify the preferred solution but explain how it is superior to the other alternatives considered. Finally, there should be a monitoring and evaluation framework set out describing how performance will be measured.

Although the processes I have set out could not be embarked on in the immediate emergency of introducing lockdown, they should surely form an inherent part of the process of easing lockdown, and ensuring consistent and timely relaxations of the regulations. It is the failure to do this that has resulted in sudden and contradictory changes to the regulations.

This has also led to unacceptable mission creep, which increasingly embodies a gradual shift in objectives. Hon. and right hon. Members will remember that the original objective was to enable the NHS to provide the best care to all the victims of covid-19 who needed it. That clear mission has now widened into a mission to suppress the spread of covid-19 as an end in itself, regardless of the cost. The irony is that, in allowing the original objective to be blurred, the important subsidiary objective of preventing the virus peaking again in the winter is being put in jeopardy.

The easing of lockdown has, sadly, become a veritable shambles. While the number of deaths from covid-19 has mercifully plummeted from its April peak, there has not been a corresponding relaxation of the emergency regulations. I shall refer later to the OECD principles of best practice for regulatory policy, but one of the key principles is:

“Proposed solutions should be appropriate to the risk posed, and costs identified and minimised.”

In the statement he made yesterday to the House, the Secretary of State for Health said that there are now

“60 patients in mechanical ventilator beds with coronavirus”.—[Official Report, 1 September 2020; Vol. 679, c. 23.]

This compares with 3,300 at the peak of the epidemic, and he then said that the latest quoted number for reported deaths is two in one day. Today, The Sun newspaper has calculated from these figures that the odds of catching covid-19 in England are about 44 in 1 million per day. Economist Tim Harford, who presents what I think is one, if not the only, good programme on the BBC—the statistics programme, “More or Less”—has said:

“Covid-19 currently presents a background risk of a one in a million chance of death or lasting harm, every day.”

While age, gender, geography, behaviour and other aspects affect the risk, it is now far lower than the risk of death or serious injury in a motor accident. On average, five people continue to be killed each day on our roads, yet I have not yet heard from the Government any proposals to ban people from driving because of the risks associated with so doing.

One sure way of ensuring consistency would be to impose the discipline of a regulatory impact assessment on each and every continuing restriction, so that the justification for loss of personal liberty could be evaluated against the alleged benefits. It is not too late for this to start, and I hope that the Minister, in responding to this debate, will provide an assurance that the forthcoming six-month review of the legislation will include a full regulatory impact assessment and an evaluation of the performance of the emergency regulations introduced.

The public would then be able to see the evidence about whether the decisions taken were correct. For example, was closing schools and setting back the education of the covid regeneration a proportionate and necessary measure? Was the postponement of 107,000 weddings across the United Kingdom justified? Could any of the 4,452 weddings which should have taken place last Saturday have been permitted? Why can people sit safely side by side with strangers on an aircraft, but not at a wedding breakfast or in a church, a theatre or a concert hall—or even in this Chamber?

Why was the World Health Organisation advice, which was originally that there should be 1 metre social distancing, not applied from the outset? We introduced a 2-metre or 6-foot rule, but that has now been modified with the 1 metre-plus rule, but at the same time the additional safeguards required for the 1 metre-plus situation are being applied to the 2-metre situation, which is creating all sorts of problems, conflicts and uncertainties for our constituents.

Is it protecting the NHS to create a situation where, as was revealed in The Times on 27 August, 15.3 million people are now on the hidden waiting list for treatment? Is it reasonable that we should try to prevent two deaths a day and keep 15.3 million people on waiting lists for treatment, with all the dire consequences that flow from that? Madam Deputy Speaker, I do not know whether you were listening to the Secretary of State for Health when he made his statement yesterday, but in my view his responses on the issue of NHS waiting lists were the weakest and least convincing parts of what he had to say.

Is the continuing economic cost of lockdown now disproportionate to the benefits? Well, let us have an exercise and see. Let us see the data presented, so that we can have a proper debate about it. I raised the importance of regulatory impact assessments in public policy making with the Leader of the House at business questions on 2 July. It was his response on that occasion which caused me to apply for this Adjournment debate, which I am delighted that we are having this evening. I said that we would be able to achieve much more consistency in Government advice with regulatory impact assessments. The Leader of the House, however, argued that

“if we spend too long doing all this, by the time we have done it we have moved on to the next stage of the lockdown.”

He accused me of “calling for bureaucratic folderol”, which would inhibit moving

“at a pace to ensure that things happen in a timely manner”.—[Official Report, 2 July 2020; Vol. 678, c. 534.]

Would that they were. But I must correct the Leader of the House, because, far from being the worthless trifles described in the expression “folderol”, regulatory impact assessments are fundamental to ensuring that we make the right decisions as legislators.

It is incredible that, instead of lockdown continuing to be relaxed, new restrictions on freedom, such as mandatory face coverings, have been introduced. The consequence is that I detect a growing atmosphere of gloom and foreboding as we see winter approaching: no vaccine availability for many months; the economy in a worse state than most of our competitors; and the prospect of the resurgence of the pandemic coinciding with the flu season. I do not like the expression “waves” because it makes it seem as though we are talking about something equivalent to the Atlantic rollers so much enjoyed by our former Prime Minister and colleague, David Cameron. We are not talking about waves. We are talking about the potential resurgence of the pandemic—not everywhere, but in particular hotspots.

This scenario demands a rational evaluation of conflicting risks to the economy and public health, together with a cost-benefit analysis, and now is the time for the Government to reinstate the intellectual rigour of the regulatory impact assessment process. Sooner or later, the incredible economic cost of the Government’s failure to remove lockdown restrictions in a timely and effective manner will become apparent. If that coincides with the Government asking their natural supporters to pay the price for their failure through higher taxes, the political consequences will indeed be dire. It is for that reason that I commend to the Government what the OECD says about regulatory impact analysis. It describes it as an

“important element of an evidence-based approach to policy-making…that…can underpin the capacity of governments to ensure that regulations are efficient and effective in a changing and complex world.”

I will not read from the whole OECD regulatory impact assessment report on best practice principles for regulatory policy, but it extends to about 40 or 50 pages and is extremely well researched and documented. As I understand it—the Minister will correct me if I am wrong—these principles are supported by the Government; the trouble is that they do not seem to be being implemented by the Government and by Government Departments. I hope that in his response the Minister will tell us what he is doing to try and put that right.

The Government should revert to following their own “better regulation framework” established under the Small Business, Enterprise and Employment Act 2015, which requires that

“A RIA should be prepared for all significant regulatory provisions as a standard of good policy making and where an appropriate RIA is expected by parliament and other stakeholders.”

The interim guidance issued in March this year sets out a general threshold for independent scrutiny of regulatory impact assessments and post-implementation reviews, where the annual net direct cost to business is greater than £5 million. It calls on Government Departments to undertake proportionate cost-benefit analysis to inform decision making.

The trouble is that this is not being done, and I will give just one topical example, to which I referred in my brief comments in the previous debate. Under the Coronavirus Act 2020, there was specific primary legislation saying that residential tenancies should be protected from eviction until 20 September this year. On Friday last week—27 August—regulations were made extending that period from 20 September for another six months. The regulations came into force on 28 August, which was last Saturday, the very same day that they were laid before Parliament. Regulation 1(2) says:

“These Regulations come into force on the day after the day on which they are laid”.

Those regulations have caused a storm of protest from residential landlords in my constituency; they are apoplectic about the fact that they are not going to be able to recover possession of their premises. Notwithstanding the contractual agreements they have entered into with their tenants, they are not going to be able to recover their premises until 31 March 2021.

It says in the explanatory notes to the regulations that they amend schedule 29 of the 2020 Act. This is primary legislation being amended by subordinate legislation subject only to the negative resolution procedure, and so one might have expected that there would be a regulatory impact assessment or something which would indicate to us, on behalf of our constituents, that the Government have thought this whole process through, but that is not there, and instead there is a little note which says:

“A full impact assessment has not been produced for this instrument due to the temporary nature of the provision.”

--- Later in debate ---

[Paul Scully]

I think that rather than gusts of public pressure, the Government have been working in what is, in effect, as close to real-time decision making as we are ever going to get, and it is based on health advice and the business response. My right hon. Friend talked about the press and the media; I direct him to the example with which my hon. Friend the Member for Christchurch started—male eyebrow trimming and beard trimming—because that was never actually in the guidance. The guidance, which I worked on, was such that male beard trimming could work out, apart from detailing at the front if there was close, face-to-face, near contact. That was exactly the same as female eyebrow trimming, so there was no sense that men could go and get their eyebrows trimmed and women could not. The rhetoric in the media that men were getting a better deal than females, which understandably upset beauticians, just was not the actuality—it was not what was happening—but unfortunately, as we know, it is sometimes difficult to work with the media to stop a good story.

We must continue to engage. We do want to get back to the formality of regulatory impact assessments but, as I say, we need to engage at pace, so we will continue to listen to businesses. Sometimes, the consultations on the guidance we have been working on have lasted literally 12 hours on a Sunday. That guidance has come to me, to the unions and to businesses and we have all been acting within the same time constraints. We have not been hiding things away from businesses and those people who are most affected by this situation.

[Jim Shannon]

I must say that I am impressed by the number of people and businesses the Minister has met; that is an indication of the knowledge that he has gauged from them. May I make a quick suggestion on weddings? It is possible, in a bigger venue, to have people self-distanced and to have more than 30 people. It is also possible at weddings to have clusters of families who live closely together: there could be tables of 10 people —genuinely—which could increase the numbers who can go to weddings. To go back to the issue of regulatory impact assessments, if that was done, more people could attend weddings.

[Paul Scully]

As I say, weddings have been a big source of concern for me and others and, understandably, that argument has been put to me. The huge difference between weddings and, say, restaurants—an example that has often been cited—is that the wedding parties tend to know each other, whereas in a restaurant people have little interest in speaking to those at the table next door. Clearly, if someone’s grandmother or extended family are sitting at the next table, as the wedding and the evening develops, social distance suddenly starts to fall by the wayside.

I totally get the fact that wedding organisers know everybody who is there, so they can register and have test and trace working effectively, but it is a concern to the scientists. We are trying to balance the economy from the economic point of view, the human behaviour point of view and the science point of view, which is a difficult mix to deal with. Because we are working at pace, the regulatory impact assessments, which are the source of this debate, are not always easy to compile. For the reasons that the Leader of the House gave—I understand the concern of my hon. Friend the Member for Christchurch about the way that was worded—when compiling a formal regulatory impact assessment while working at pace, it is not always possible to go through that procedure.

We are reminding Departments of the importance of ensuring that appropriate resources are invested in gathering and analysing evidence about the regulatory impacts of the affected policies, and to publish it, where appropriate, throughout the period, if not at that particular time.