Regulatory challenges faced by UK infrastructure investors
In our latest submission to the UK’s Industry and Regulators committee, as part of their inquiry into regulators, we highlighted the regulatory challenges infrastructure investors face
We flag in our submission that, though “the UK's regulatory framework has been instrumental in driving substantial investments in regulated sectors” recent trends in UK economic regulation suggest a “troubling shift towards prioritising short-term goals, often swayed by immediate political pressures". In this context, we highlighted that “it is crucial for the government to re-evaluate the equilibrium between regulator independence, long-term investment objectives, and short-term political factors” to ensure a regulatory framework which is fit for purpose.
Our messages have been heard by the committee and we are pleased to see our evidence cited in the committee’s report titled “Who watches the watchdogs? Improving the performance, independence, and accountability of UK regulators”.
The report makes the following recommendations to government:
- Streamline regulators’ duties and objectives and provide prioritisation in the event of conflicts.
- State clearly what it has delegated to regulators to decide independently, and in which areas it will be appropriate for the Government to provide direction.
- Tackle the challenges of, and insufficient investment in, long-term infrastructure projects by placing the National Infrastructure Commission on a statutory footing.
Our full submission can be downloaded from the top right of this page.