The Prime Minister hired a special task force to investigate how the UK could use its new regulatory freedoms to boost business dynamism. Chaired by former Tory Party leader Sir Iain Duncan Smith, the Task Force on Innovation, Growth and Regulatory Reform delivered its conclusions on Tuesday. The group claimed Brexit offered a “golden opportunity” to create a new regulatory framework to encourage innovation, growth and foreign investment.
In particular, the task force authors urged the government to tear up EU data protection laws and make it easier for pension funds to invest in fast-growing tech companies.
They argued that the EU’s “precautionary principle” is stifling British businesses and should be replaced by a British “principle of proportionality”.
The âprecautionary principleâ is anchored in EU law and is a far-reaching approach to regulating innovation.
Critics have branded it unscientific and reactionary.
In a comment for the Daily Telegraph, the task force members wrote: âAt a time of extraordinarily rapid technological change, the freedom to set your own regulatory standards offers great opportunities.
âWith the enlargement of the EU, its internal processes have become slower and more bureaucratic, and their approach to the ‘precautionary principle’ has become an excuse for neglecting the role of regulation in economic competitiveness.
READ MORE: âWe don’t need the EU anymoreâ – Boris supports the Australian trade agreement
Earlier this week, the Prime Minister sealed the deal on a new trade deal between the UK and Australia.
The deal is the UK’s first bespoke trade deal since leaving the EU.
The pact includes British goods such as cars, scotch whiskey, cookies and ceramics.
The government sees the agreement as an important step towards the UK’s accession to the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTTP).