The ‘Fully Costed’ Fallacy


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In the Media

Christopher Snowdon writes for Spiked!

Government and Institutions

Christopher Snowdon writes for The Critic

Daniel Freeman writes for CapX

IEA Managing Editor Daniel Freeman has written for CapX discussing new IEA research which analyses the uncosted regulatory commitments of the major parties’ manifestos.

Daniel wrote:

“Across the manifestos, there are a total of 361 policies that would increase the regulatory burden – and just 67 which would decrease it.

“Some of these 361 regulatory proposals are unlikely to place a huge burden on the economy. The Green Party’s mandatory hedgehog holes in new fencing are probably not going to involve huge costs in isolation. The rule will, however, add friction to an industry which is already burdened with compliance costs, and help stack the odds against smaller developers.

“However, other regulatory proposals have price tags that run into the billions of pounds. Take for example ‘Martyn’s Law’ (backed by the Conservatives, Labour, and the SNP) requiring public venues to come up with ‘terrorist prevention plans’, which is estimated by the Home Office to cost £2.7 billion. Or the Labour proposal requiring rented homes to meet energy efficiency standards which in 2020 BEIS costed at £12.2bn. On paper these costs are to be borne by businesses, but there is every reason to believe that a large part of the cost will ultimately fall on the consumer.”

Read Daniel’s full piece here.

Read a copy of Shadow Expenses: Uncosted Regulatory Burdens in Election Manifestos by IEA Director of Public Policy and Communications Matthew Lesh.

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