Cutting red tape may not be the shortcut to UK economic growth

The government promises to free British businesses from the paperwork jungle, but is regulation really the villain? Heather Stewart argues that effective rules help markets work properly, protect workers and prevent businesses from harming consumers or the environment. Privatised water companies already face several regulators, yet polluted rivers and inadequate infrastructure remain problems. Meanwhile, ministers want to cut the administrative burden of regulation by 25%, despite concerns that regulators are underfunded. Perhaps the answer is not fewer rules, but better ones.

Cutting ‘red tape’ is nothing but a red herring – and arguably counterproductive | Heather Stewart | The Guardian

1. Explain one reason why government regulation may improve the allocation of resources in a market.

2. Assess how reducing regulation could affect UK firms.

3. Discuss whether the UK government should reduce regulation to encourage economic growth.