UK Economic Regulation
The Department for Business, Innovation & Skills, successor to the Department of Business, Enterprise and Regulatory Reform, which was previously known as the Department of Trade and Industry, the Department of Trade, and originally the Board of Trade, together with other similar names.
In broad terms, the Department is responsible for regulating industry, commercial affairs, and promoting British industry. The Department seeks to champion business within government, in particular, seeks to create a favourable business environment, promoting the interests of employers, employees, and consumers, and encouraging sustainable businesses.
The Department plays a central role in laws relating to fair trading, consumer protection, and competition. The Markets Authority has recently been formed, absorbing the former Office of Fair Trading and Competition Commission. The Competition and Markets Authority deals with mergers, acquisitions, and anticompetitive behaviour, generally, the sections on competition law in the United Kingdom.
The Competition and Markets Authority deals with mergers, acquisitions, and anticompetitive behaviour. Generally, the sections on competition law in the United Kingdom.
The Commission seeks to promote competition for consumers. It investigates mergers, conducts market studies, investigates breaches of EU and UK competition law, enforces competition and consumer protection legislation.
The Financial Authority is regulated by the Financial Conduct Authority and Prudential Regulation Authority. See the separate sections on banking and financial services at the United Kingdom level. The Financial Policy Committee seeks to identify macro-economic risks to stability, recommending action to ensure macro-economic stability.
The 1980s saw an increased tightening of rules on strikes and industrial actions. Closed shops were effectively prohibited, as was secondary picketing. Ballots were required for strike action. This position was largely retained by the Labour government in 1997-2010.
The Labour government introduced a national minimum wage and broadened employment protections, partly as a result of EU requirements.
The Employment Relations Act, in effect, enabled units to be recognized if they met certain conditions. This process may be assisted by the Central Arbitration Committee, which creates a panel.
Generally, a ballot is required if 40% of the bargaining unit votes for recognition, a majority vote with at least 40% of the members of the bargaining unit in favor. A union may be entitled to automatic recognition rights. More than half of employees in the sector have joined it.
The Coalition government proposed measures by which more than a strike action would have to be approved by half of the entire membership and would have to be approved case by case, rather than preventing ballots for rolling strike action.
The Advisory, Conciliation and Arbitration Service is a statutory industrial relations service body that seeks to conciliate in industrial disputes with a view to avoiding strike actions, resisting and avoiding industrial action, preemptively arbitrating and mediating in disputes or grievances. The Enterprise Regulatory Reform Act increased the period for unfair dismissal qualification to two years, other than in limited cases; it incentivizes the use of the early conciliation service through Acas settlement agreements.
Utilities
Most utilities were nationalized by the post-war Labour Government. They had been owned by various operators and undertakers, leading to inconsistency of standards and minimal oversight and regulation.
Public utilities were largely subsidized by the taxpayer and received significant subsidies, and notorious inefficiencies and abuses were perceived to have developed. British Telecom was privatized from the Post Office, followed by the British Gas Board, electricity in 1990, and railways in 1993. The Royal Mail was partly privatized in 2013.
Privatization was part of the 1980s Conservative government’s attempts to introduce free-market principles into areas in which they were not previously applied.
By the 1990s, the principal utilities had been completely deregulated, privatized, and subject to a new scheme of regulation. The principal utility provider will typically carry universal service obligations #[06:18]. Some of the industries are overseen by regulators which seek to ensure customers receive value for money, fair terms and conditions, and ensure the maintenance of proper competition.
British Telecom was initially privatized, secondly, they are open to the market with the advent of mobile phones, broadband, and other telecommunications. There are now numerous licensed communication providers in the communication sector. BTU remains responsible for parts of the infrastructure.
The Office of Communications regulates radio, television, and telecommunications. It succeeded Oftel in the independent Television Commission, Radio Communications Agency in 2011. It regulates the Postal Service.
The British Gas Board was privatized in 1986, passing from being a monopoly to a regulated provider of energy. New gas providers emerged from regions. Many providers provide both gas and electricity. A single firm owns the infrastructure. National Grid PLC charges other companies for its use. Electricity was privatized in 1990, creating three generation companies and over a dozen suppliers. The office of gas and electricity markets, Ofgem, regulates the energy.
The water and sewage companies were privatized in 1989, with 10 regional water and sewage companies. Financial and consumer matters, consumer competition, and financial matters are regulated by the Water Services Regulatory Authority, Ofwat. The Environmental Agency monitors and regulates pollution, and the Drinking Water Inspectorate monitors water quality.
Industrial and commercial entities are metered. Households are charged based on household bands or metering if they opt in. In certain areas, compulsory meters have been introduced where there are arrears or entirely in certain areas. The Consumer Council for Water acts as a consumer watchdog.
British Rail was privatized in 1993 and divided amongst numerous operators. The track and infrastructure were retained by Railtrack, a privately-owned monopoly which was replaced following criticism by Network Rail in 2002, a non-profit-making company. Other companies charged for the use of the network. Franchises are awarded based on minimum service level undertakings, periods between seven and twenty years. Franchises are bid for on the basis of the lowest public subsidy.
Generally, a single operator operates in the regions. Some local competition exists.
The Office of Rail Regulation and the Department of Transport.
The Office of Rail Regulation deals with pricing and economic factors as well as access to the Network. The Department for Transport deals with franchises and the enforcement of obligations by providers.