Growth duty
Guidance on how regulators should have regard to economic growth.
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The Growth Duty came into statutory effect on 29 March 2017 under the Deregulation Act 2015 and requires regulators to have regard to the desirability of promoting economic growth, alongside the delivery of protections set out in relevant legislation. On 21 May 2024 the Growth Duty was extended to include Ofcom, Ofgem and Ofwat, and the statutory guidance was updated.
The regulators and regulatory functions to which the Growth Duty applies are specified in the Economic Growth (Regulatory Functions) Order 2017. They include most national regulators but not local authorities nor fire and rescue authorities.
The Department for Business and Trade has refreshed the related statutory guidance to provide greater clarity to support regulators in their application of and reporting against the Growth Duty.
The statutory guidance:
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outlines drivers of sustainable economic growth, and behaviours of Smarter Regulation, supported by case study examples, to provide clarity to regulators within scope of the duty and help them promote growth
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identifies behaviours that contribute to good regulatory decision making and smarter regulation
The purpose of the statutory guidance is to assist regulators to give appropriate consideration to the potential impact of their decisions on economic growth, within the sectors they directly regulate and the broader UK economy, alongside or as part of consideration of their other statutory duties.
Decisions on growth will involve consideration of a regulator’s other duties, this may relate to environmental or consumer protection, and there may be a need to balance multiple objectives. Regulators, as independent and experienced bodies, are best placed to balance their own decision making in this regard. The revised guidance intends to encourage transparency and accountability for growth across regulators, attracting investment and creating jobs.
The Deregulation Act 2015 was extended by the Enterprise Act 2016, requiring regulators to formally report on the effect that the Growth Duty has on the way they exercise their regulatory functions and the impacts of this on business. However, this statutory reporting function has not yet been commenced.
Instead, the Department for Business and Trade has worked with regulators to develop the Growth Duty Performance Framework. This framework will enhance transparency in how regulators are supporting economic growth. The framework sets out a balance of quantitative metrics as well as qualitative reporting to ensure regulators are able to provide a comprehensive response.
The government expects relevant regulators to report against these metrics, in a level of detail commensurate with the size and impact of the regulatory body, alongside the provision of qualitative evidence on how you are delivering economic growth.
Updates to this page
Published 30 March 2017Last updated 24 May 2024 + show all updates
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The Growth Duty Performance Framework document has been updated to include 2024 copyright information.
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Statutory guidance has been updated following the conclusion of the Growth Duty consultation.
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Added in a link to the new consultation on revised statutory guidance.
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First published.