Legislative and Regulatory Reform Act 2006
Part 1 — Order-making powers
Powers
Power to remove or reduce burdens
1
- (1) A Minister of the Crown may by order under this section make any provision which he considers would serve the purpose in subsection (2).
- (2) That purpose is removing or reducing any burden, or the overall burdens, resulting directly or indirectly for any person from any legislation.
- (3) In this section “burden” means any of the following—
- (a) a financial cost;
- (b) an administrative inconvenience;
- (c) an obstacle to efficiency, productivity or profitability; or
- (d) a sanction, criminal or otherwise, which affects the carrying on of any lawful activity.
- (4) Provision may not be made under subsection (1) in relation to any burden which affects only a Minister of the Crown or government department, unless it affects the Minister or department in the exercise of a regulatory function.
- (5) For the purposes of subsection (2), a financial cost or administrative inconvenience may result from the form of any legislation (for example, where the legislation is hard to understand).
- (6) In this section “legislation” means any of the following or a provision of any of the following—
- (a) a public general Act or local Act (whether passed before or after the commencement of this section), ...
- (aa) a Measure or Act of the Assembly,
- (ab) any assimilated direct legislation, or
- (b) any Order in Council, order, rules, regulations, scheme, warrant, byelaw or other subordinate instrument made at any time under— ,
- (a) an Act referred to in paragraph (a), or
- (b) a Measure or Act of the Assembly,
but does not include any instrument which is, or is made under, Northern Ireland legislation.
- (7) Subject to this Part, the provision that may be made under subsection (1) includes—
- (a) provision abolishing, conferring or transferring, or providing for the delegation of, functions of any description,
- (b) provision creating or abolishing a body or office,
and provision made by amending or repealing any enactment.
- (8) An order under this section may contain such consequential, supplementary, incidental or transitional provision (including provision made by amending or repealing any enactment or other provision) as the Minister making it considers appropriate.
- (9) An order under this section may bind the Crown.
- (10) An order under this section must be made in accordance with this Part.
Power to promote regulatory principles
2
- (1) A Minister of the Crown may by order under this section make any provision which he considers would serve the purpose in subsection (2).
- (2) That purpose is securing that regulatory functions are exercised so as to comply with the principles in subsection (3).
- (3) Those principles are that—
- (a) regulatory activities should be carried out in a way which is transparent, accountable, proportionate and consistent;
- (b) regulatory activities should be targeted only at cases in which action is needed.
- (4) Subject to this Part, the provision that may be made under subsection (1) for the purpose in subsection (2) includes—
- (a) provision modifying the way in which a regulatory function is exercised by any person,
- (b) provision amending the constitution of a body exercising regulatory functions which is established by or under an enactment,
- (c) provision transferring, or providing for the delegation of, the regulatory functions conferred on any person,
and provision made by amending or repealing any enactment.
- (5) The provision referred to in subsection (4)(c) includes provision—
- (a) to create a new body to which, or a new office to the holder of which, regulatory functions are transferred;
- (b) to abolish a body from which, or office from the holder of which, regulatory functions are transferred.
- (6) The provision that may be made under subsection (1) does not include provision conferring any new regulatory function or abolishing any regulatory function.
- (7) An order under this section may contain such consequential, supplementary, incidental or transitional provision (including provision made by amending or repealing any enactment or other provision) as the Minister making it considers appropriate.
- (8) An order under this section may bind the Crown.
- (9) An order under this section must be made in accordance with this Part.
Restrictions
Preconditions
3
- (1) A Minister may not make provision under section 1(1) or 2(1), other than provision which merely restates an enactment, unless he considers that the conditions in subsection (2), where relevant, are satisfied in relation to that provision.
- (2) Those conditions are that—
- (a) the policy objective intended to be secured by the provision could not be satisfactorily secured by non-legislative means;
- (b) the effect of the provision is proportionate to the policy objective;
- (c) the provision, taken as a whole, strikes a fair balance between the public interest and the interests of any person adversely affected by it;
- (d) the provision does not remove any necessary protection;
- (e) the provision does not prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise;
- (f) the provision is not of constitutional significance.
- (3) A Minister may not make provision under section 1(1) or 2(1) which merely restates an enactment unless he considers that the condition in subsection (4) is satisfied in relation to that provision.
- (4) That condition is that the provision made would make the law more accessible or more easily understood.
- (5) In this section and sections 4 to 7, to “restate” an enactment means to replace it with alterations only of form or arrangement (and for these purposes to remove an ambiguity is to make an alteration other than one of form or arrangement).
Subordinate legislation
4
- (1) An order under this Part may only confer or transfer a function of legislating on or to—
- (a) a Minister of the Crown;
- (b) any person on or to whom functions are conferred or have been transferred by an enactment; or
- (c) a body which, or the holder of an office which, is created by the order.
- (2) An order under this Part may not make provision for the delegation of any function of legislating.
- (3) An order under this Part may not make provision to confer a function of legislating on a Minister of the Crown (alone or otherwise) unless the conditions in subsections (4) and (5) are satisfied.
- (3A) An order under this Part may not make provision to confer a function of legislating on the Welsh Ministers, the First Minister for Wales or the Counsel General to the Welsh Assembly Government (alone or otherwise) unless the conditions in subsections (4) and (5A) are satisfied.
- (4) The condition in this subsection is that the function is exercisable by statutory instrument.
- (5) The condition in this subsection is that such a statutory instrument—
- (a) is an instrument to which section 5(1) of the Statutory Instruments Act 1946 (c. 36) applies (instruments subject to annulment by resolution of either House of Parliament); or
- (b) is not to be made unless a draft of the statutory instrument has been laid before and approved by a resolution of each House of Parliament.
- (5A) The condition in this subsection is that such a statutory instrument—
- (a) is an instrument to which section 5(1) of the Statutory Instruments Act 1946 applies (instruments subject to annulment); or
- (b) is not to be made unless a draft of the statutory instrument has been laid before and approved by a resolution of the Assembly.
- (6) Subsections (1) to (3A) do not apply to provision which merely restates an enactment.
- (7) For the purposes of this section a “function of legislating” is a function of legislating by order, rules, regulations or other subordinate instrument.
Taxation
5
- (1) An order under this Part may not make provision to impose, abolish or vary any tax.
- (2) The Treasury may by regulations make provision for varying the way in which a relevant tax has effect in relation to—
- (a) any property, rights or liabilities transferred by or under an order under this Part; or
- (b) anything done for the purposes of, or in relation to, the transfer of any property, rights or liabilities by or under an order under this Part.
- (3) The provision which may be made under subsection (2)(a) includes in particular provision for—
- (a) a tax provision not to apply, or to apply with modifications, in relation to any property, rights or liabilities transferred;
- (b) any property, rights or liabilities transferred to be treated in a specified way for the purposes of a tax provision;
- (c) the Minister of the Crown making the order to be required or permitted, with the consent of the Treasury, to determine, or specify the method for determining, anything which needs to be determined for the purposes of any tax provision so far as relating to any property, rights or liabilities transferred.
- (4) The provision which may be made under subsection (2)(b) includes in particular provision for—
- (a) a tax provision not to apply, or to apply with modifications, in relation to anything done for the purposes of or in relation to the transfer;
- (b) anything done for the purposes of or in relation to the transfer to have or not have a specified consequence or be treated in a specified way;
- (c) the Minister of the Crown making the order to be required or permitted, with the consent of the Treasury, to determine, or specify the method for determining, anything which needs to be determined for the purposes of any tax provision so far as relating to anything done for the purposes of or in relation to the transfer.
- (5) Regulations under subsection (2) are to be made by statutory instrument.
- (6) A statutory instrument containing regulations under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons.
- (7) In this section—
- “relevant tax” means income tax, corporation tax, capital gains tax, stamp duty or stamp duty reserve tax;
- “tax provision” means a provision of an enactment about a relevant tax.
Criminal penalties
6
- (1) An order under this Part may not make provision to create a new offence that is punishable, or increase the penalty for an existing offence so that it is punishable—
- (a) on indictment, with imprisonment for a term exceeding two years; or
- (b) on summary conviction, with—
- (i) imprisonment for a term exceeding the normal maximum term; or
- (ii) a fine exceeding level 5 on the standard scale.
- (2) In subsection (1)(b)(i), “the normal maximum term” means—
- (a) in relation to England and Wales—
- (i) in the case of a summary offence, 51 weeks; and
- (ii) in the case of an offence triable either way, twelve months; and
- (b) in relation to Scotland or Northern Ireland, six months.
- (3) In the case of an offence which, if committed by an adult, is triable either on indictment or summarily and is not an offence triable on indictment only by virtue of—
- (a) Part 5 of the Criminal Justice Act 1988 (c. 33), or
- (b) section 292(6) and (7) of the Criminal Procedure (Scotland) Act 1995 (c. 46),
the reference in subsection (1)(b)(ii) to a fine exceeding level 5 on the standard scale is to be construed as a reference to the statutory maximum.
- (4) If an order under this Part making provision creating an offence, or altering the penalty for an offence, is made before the date on which section 281(5) of the Criminal Justice Act 2003 (c. 44) comes into force, the order must provide that, in relation to a summary offence committed before that date, any reference to a term of imprisonment of 51 weeks is to be read as a reference to six months.
- (5) If an order under this Part making provision creating an offence, or altering the penalty for an offence, is made before 2 May 2022, the order must provide that, in relation to an offence triable either way committed before that date, any reference to a term of imprisonment of twelve months is to be read as a reference to six months.
- (6) Subsection (1) does not apply to provision which merely restates an enactment.
Forcible entry etc
7
- (1) An order under this Part may not make provision to—
- (a) authorise any forcible entry, search or seizure; or
- (b) compel the giving of evidence.
- (2) Subsection (1) does not prevent an order under this Part from extending any power for purposes similar to those to which the power applied before the order was made.
- (3) Subsection (1) does not apply to provision which merely restates an enactment.
Excepted enactments
8
An order under this Part may not make provision amending or repealing any provision of—
- (a) this Part; or
- (b) the Human Rights Act 1998 (c. 42).
Scotland
9
An order under this Part may not, except by virtue of section 1(8) or 2(7), make provision which would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament.
Northern Ireland
10
An order under this Part may not, except by virtue of section 1(8) or 2(7), make provision to amend or repeal any Northern Ireland legislation.
Wales
11
- (1) Except with the agreement of the Assembly, an order under this Part may not make provision which would be within the legislative competence of the Assembly if the provision were contained in–—
- (a) an Assembly Measure (until the Assembly Act provisions of the Government of Wales Act 2006 come into force), or
- (b) an Act of the Assembly (after those provisions come into force).
- (2) An order under this Part may not make any provision—
- (a) conferring a function on the Welsh Ministers, the First Minister for Wales or the Counsel General to the Welsh Assembly Government,
- (b) modifying or removing a function of the Welsh Ministers, the First Minister for Wales or the Counsel General to the Welsh Assembly Government,
- (c) restating any provision which confers a function on the Welsh Ministers, the First Minister for Wales or the Counsel General to the Welsh Assembly Government, or
- (d) that could be made by the Welsh Ministers, the First Minister for Wales or the Counsel General to the Welsh Assembly Government in the exercise of any of their functions,
except with the agreement of the Welsh Ministers.
- (3) Subsections (1) and (2)(d) do not apply to any provision of an order under this Part falling within section 1(8) or 2(7).
Procedure
Procedure: introductory
12
- (1) An order under this Part must be made by statutory instrument.
- (2) A Minister may not make an order under this Part unless—
- (a) he has consulted in accordance with section 13;
- (b) following that consultation, he has laid a draft order and explanatory document before Parliament in accordance with section 14; and
- (c) the order is made, as determined under section 15, in accordance with—
- (i) the negative resolution procedure (see section 16);
- (ii) the affirmative resolution procedure (see section 17); or
- (iii) the super-affirmative resolution procedure (see section 18).
- (3) Paragraph 4 of Schedule 8 to the European Union (Withdrawal) Act 2018 (procedure for certain modifications of assimilated direct legislation ...) does not apply in relation to orders under this Part.
Consultation
13
- (1) If a Minister proposes to make an order under this Part he must—
- (a) consult such organisations as appear to him to be representative of interests substantially affected by the proposals;
- (b) where the proposals relate to the functions of one or more statutory bodies, consult those bodies, or persons appearing to him to be representative of those bodies;
- (c) consult the Welsh Ministers where the proposals, so far as applying in or as regards Wales, relate to any matters in relation to which the Welsh Ministers, the First Minister for Wales or the Counsel General to the Welsh Assembly Government exercise functions (and where the agreement of the Welsh Ministers is not required under section 11)
- (d) in such cases as he considers appropriate, consult the Law Commission, the Scottish Law Commission or the Northern Ireland Law Commission; and
- (e) consult such other persons as he considers appropriate.
- (2) If, as a result of any consultation required by subsection (1), it appears to the Minister that it is appropriate to change the whole or any part of his proposals, he must undertake such further consultation with respect to the changes as he considers appropriate.
- (3) If, before the day on which this section comes into force, any consultation was undertaken which, had it been undertaken after that day, would to any extent have satisfied the requirements of this section, those requirements shall to that extent be taken to have been satisfied.
- (4) Where—
- (a) proposals for an order under this Part are the same as proposals for an order under section 1 of the Regulatory Reform Act 2001 (c. 6),
- (b) consultation has at any time been undertaken in relation to the proposals under section 5 of that Act, and
- (c) that consultation satisfied the requirements of that section in relation to the proposals,
the requirements of this section shall be taken to have been satisfied in relation to the proposals.
- (5) In subsection (1)(b) “statutory body” means—
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