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Regulatory reform could lead to perverse economic outcomes

19th November 2012

Responding to the Government announcement that every new regulation that imposes a new financial burden on firms must be offset by reductions in red tape that will save double those costs, Peter Young, Chairman of the Aldersgate Group, has argued that such arbitrary targets can lead to perverse outcomes for business.

He said: "There is no analysis of the quality of regulation or the need for Impact Assessments to better take into account the full externalities on the environment or society. As a result this quest for monetary savings risks losing the purpose of best value regulation to correct market failures and provide fair competition."

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