One of the hallmarks of good regulation is that regulators who have been set objectives or required to follow certain procedures should themselves be accountable for achieving the intended outcomes in practice and for following the procedures.
Parliament
As the supreme law-making body in the UK, Parliament is ultimately responsible for holding to account those to whom it has directly or indirectly given regulatory powers and responsibilities to ensure that they are meeting their regulatory objectives and conforming to the standards set by Parliament (eg, the Principles of Good Regulation).
Parliament has power to review the activity of regulators and the regulatory framework at any time and it considers amendments to laws etc as part of its usual activity.
The main mechanisms designed to help it hold regulators to account are outlined below and are somewhat fragmented in nature.
Parliamentary Committees
Parliament is supported by numerous Committees (of MPs), both permanent and temporary which can review activity of government and others, and issue reports. The House of Commons has departmental select committees. These were established to 'shadow' government departments and scrutinise the spending, administration and policy of each department.
Various Committees have reviewed aspects of the regulatory regime in recent years, the Public Accounts Committee (of the House of Commons) and the Constitution Committee (of the House of Lords) being two of the most active.
EXAMPLE - In March 2020 The Business, Energy and Industrial Strategy Committee launched an inquiry on Delivering Audit Reform following a series of inquiries from 2018, including that of Sir Donald Brydon’s Review of the Financial Reporting Council, following which a draft Bill was proposed which included the recognition of a new regulatory body.
The Industry and Regulators Committee of the House of Lords was appointed in 2021 to consider matters relating to industry, including the policies to promote industrial growth, skills and competitiveness, and to scrutinise the work of UK regulators and has published some reports on certain aspects of regulation.
Reporting and other controls
Regulators given power to use civil sanctions under the relevant statute must publish reports providing information on how those sanctions have been applied. The better regulation framework also requires information on impact assessments etc to be published. More generally, regulators are often required (by statute) to produce reports including annual accounts.
The National Audit Office provides reports to Parliament on regulatory matters. For instance, it may do so as part of its statutory authority to examine and report to Parliament on whether departments and the bodies they fund have used their resources efficiently, effectively and with economy.
The Courts – natural justice
Bodies exercising public functions (which includes a variety of regulators, not just government departments) may have their decisions (including the making of rules) challenged in the courts if they infringe relevant principles of ‘natural justice’ under UK administrative/ public law, for instance, if required procedures (eg, where applicable, to consult) have not been followed.