Guidance

Measures that require scrutiny by the Regulatory Policy Committee

Updated 4 March 2025

Step 1: Understand if the measure is a regulatory provision covered by the Better Regulation Framework

Regulatory provisions place statutory requirements on businesses. They can be in an act of law or a statutory instrument or they can come from a body that has been given power to make regulations in an act of law.   

This framework does not cover regulatory provisions that deal with:  

• taxes, duties, levies or other charges
• procurement
• grants and other financial assistance made on behalf of a public body
• commencement orders

Paragraph 2.3 of the Better Regulation Framework guidance gives further information about the definition of a regulatory provision.

Step 2: Work out if the measure is excluded from independent scrutiny

Regulatory provisions are excluded from independent scrutiny if they:

• are necessary to implement international commitments and obligations
• are necessary to comply with court judgments
• are necessary to introduce or update technical standards or listed items in a schedule to an act where these follow the recommendations of the relevant independent advisory body
• are necessary to make any other technical or drafting amendments to existing legislation, including those under the ‘minor and technical’ definition in ‘The Guide to Making Legislation’
• deal with the operational, day-to-day conduct of regulators
• impose fines or penalties (but the exclusion does not apply to provisions that introduce powers to issue fines or penalties)
• deal with the safety of tenants, residents and occupants of buildings

If a measure is excluded, you must log basic information in the RPC’s regulatory provision register including the exclusion and rationale for the exclusion.

Annex 1 of the Better Regulation Framework guidance gives further information about exclusions.

Step 3: Check if the equivalent annual net direct cost to business is greater than ±£10 million

If the equivalent annual net direct cost to business (EANDCB) of the measure is less than ±£10 million it is exempt from scrutiny.

You must log the regulatory provision with the RPC and include justification for applying the exemption. Paragraph 6.4 of the Better Regulation Framework guidance explains what information to provide.

Paragraphs 6.9 to 6.12 of the Better Regulation Framework guidance give more information about this exemption.

Step 4: Decide if the measure is urgent

There may not be enough time for RPC scrutiny if a measure is urgent. You must still log all information with the RPC.

Paragraphs 6.12 and 6.13 of the Better Regulation Framework guidance give more information about urgent measures.

Flowchart

A decision tree setting out the steps involved in deciding if RPC scrutiny is required.

Accessible flowchart

1. Is the measure a regulatory provision?

• no - not subject to scrutiny
• yes - proceed to step 2

2. Do any exclusions apply?

• yes - log basic information on the RPC register
• no - proceed to step 3

3. Is the Estimated Annual Net Direct Cost to Business (EANDCB) less than + £10 million?

• yes - log basic information on the RPC register with evidence on alternatives, de minimis justification, and wider impacts
• no - proceed to step 4

4. Is the measure urgent?

• yes - cabinet must provide collective agreement of urgency and department must submit an impact assessment to RPC as soon as possible
• no - follow scrutiny process