New regulations proposed during this election campaign could
significantly increase costs for businesses and consumers,
according to a new briefing paper from the free market think tank
the Institute of Economic Affairs.
Shadow Expenses: Uncosted
Regulatory Burdens in Election Manifestos analyses
the manifestos of the six largest UK parties. It finds a total of
361 policies that would increase the regulatory burden on
businesses, compared to just 67 that would decrease it.
The Liberal Democrats have proposed the most new regulation, with
128 policy measures, followed by the Green Party at 104. Labour's
manifesto includes 62 proposals to increase the regulatory
burden, compared to 13 proposed reductions. The Conservatives
have proposed 28 new regulatory measures and 20 that would reduce
the regulatory burden. Reform UK has put forward 14 increases and
15 decreases.
The proposals range from relatively trivial policies, like the
Green Party's compulsory hedgehog holes in all new fencing, to
the Labour Party's plan to increase the minimum wage, apply it to
all age groups, and extend equal pay duties. The Conservatives,
Labour and SNP have also backed ‘Martyn's Law' terrorism risk
assessments for hospitality and night time venues, which the
government's impact assessment found would cost £2.7 billion.
The briefing, authored by the IEA's Director of Public Policy and
Communications Matthew Lesh, highlights that no party has
presented costings for their regulatory proposals despite claims
of offering 'fully costed' manifestos. It warns that the economic
impact of these regulatory changes is likely to be larger than
the proposed fiscal changes for many parties.
Labour has proposed five tax-raising measures, which are expected
to increase revenues by £8.6 billion. Just one Labour policy,
requiring privately rented homes to meet minimum energy
standards, would cost £12.2 billion according to the government's
impact assessment. Liberal Democrats and the Green Party have
included the same policy in their manifestos.
-
The Centre for Economics and Business Research has estimated
that the 2030 ban on the sale of new petrol and diesel cars
will cost an extra £1,000 per household per year from 2022
until 2050. [Labour, Green Party, Liberal Democrats policy]
-
The government's impact assessment for the Renters (Reform)
Bill found a cost to business of £1 billion. [Conservative,
Labour, Green Party, Liberal Democrats]
-
The government's impact assessment found that the football
regulator would cost clubs £79.9 million. [Conservative,
Labour and Liberal Democrats]
-
The government's impact assessment found that the smoking ban
would cost businesses £2 billion. [Conservative, Labour and
SNP]
-
The government's impact assessment estimated that the junk
food advertising ban would cost businesses £664 million.
[Conservative and Labour]
Lesh also welcomes some manifesto commitments, such as planning
reforms, that could reduce business burdens and grow the economy.
However, he warns that the overall trend is towards increased
compliance requirements.
Matthew Lesh, paper author and IEA Director of Public
Policy and Communications, said:
"The major parties are proposing a tsunami of new regulations
that could significantly increase costs for businesses and
consumers. These policies will have far-reaching economic
consequences, from banning petrol cars to mandating higher energy
efficiency standards.
"It's concerning that parties claim to have 'fully costed'
manifestos while ignoring the substantial costs of their
regulatory proposals. Voters deserve transparency about the true
impact of platforms on their wallets and the wider economy.
"While some regulations serve important purposes, the sheer
volume proposed risks higher prices, lower wages, and stifled
innovation. Parties should carefully consider the costs and
benefits of new rules, rather than defaulting to more red tape in
the face of every challenge."
