Guidance

Regulator Sponsorship Charter

Published 8 July 2026

The sponsorship approach to deliver the Regulatory Action Plan

Purpose and scope

As the Regulatory Action Plan sets out, the UK’s regulatory system has great strengths, and proportionate approaches from regulators are vital to enabling economic growth. To deliver on the action plan, a whole-of-government approach is needed to strengthen the model of regulator accountability and improving strategic alignment with government where appropriate.

This charter, which complements and builds on the Arm’s Length Body Sponsorship Code of Good Practice, publicly sets out the vital role and commitments of sponsor departments to driving forward the ambitions of the action plan. It should therefore be followed in full for sponsors for the key regulators set out in the action plan, and sponsors of other regulators which can help enable economic growth should apply a proportionate approach. 

Interpretation: Many sponsors and regulators have strong existing mechanisms and approaches that should be used to meet the charter outcomes where relevant. Regulators also have various different administrative classifications and legal frameworks, sometimes including being ultimately accountable to Parliament while still having a responsible minister. This charter must therefore not be interpreted or applied in any ways that contravene any such frameworks. However, departments must use all appropriate levers to deliver on this charter, whether through statutory mechanisms or alternative non-statutory approaches.

Sponsorship commitments

A) Departments should set strategic steers for regulators, including on growth and innovation

Government has a mandate to set strategic steers for regulators (via either relevant statutory or non-statutory mechanisms). This government is actively doing this to help improve strategic alignment and achieve the Growth Mission, including to set expectations around growth, innovation and proportionality. These should be provided while preserving regulators’ statutory operational independence. In practice, this means departments should:

• set clear steers for regulators, including expectations around enabling growth while fulfilling their legal duties, and establish a mechanism for regulators to report areas of trade-offs and ambiguity to receive the necessary clarity. This should include consideration of when and where steers can be provided on acceptable risk thresholds

• develop and set ambitious ‘Growth Goals’ or equivalent in collaboration with regulators, and set or agree (as appropriate) stretching, outcome-focused KPIs that are clear, targeted and time-bound, incentivising strategic alignment and a balanced approach to growth, risk and protection

• streamline regulations and duties, and reduce unnecessary burdens where appropriate, consolidating or simplifying the regulatory landscape. This includes working with regulators and the Regulatory Innovation Office to identify and remove barriers to adopting new technologies, including by scaling up regulator artificial intelligence (AI) capabilities and working together to enable AI-driven growth

B) Departments should actively hold their regulators to account (as appropriate), including for supporting economic growth and delivering ‘growth goals’ or equivalent KPIs

As set out previously, while holding regulators to account must not contravene any legal frameworks for regulators, including where they are ultimately accountable to Parliament, departments must still use all appropriate statutory or alternative levers to deliver on this charter. Departments should:

• make full use of regulator reviews to hold regulators to account, and working with regulators, where appropriate, on how they can improve pace, predictability, proportionality and processes. This should include identifying and promoting good practice. Biannual ministerial performance reviews should draw on actively maintained departmental assessment of regulator performance, including from key performance indicators (KPIs), delivery against duties and alignment with strategic steers, and the regulator’s contribution to growth. This should include maintaining insights from external stakeholders and input from relevant policy teams, and sharing assessments with the department’s Permanent Secretary. It also means understanding the legal framework and duties of regulators and consider if these need clarifying, and identify when a deeper independent review for each key regulator should occur in each Parliament

• proactively manage, track, challenge and report centrally on all regulator growth commitments – including progress against growth goals and/or KPIs, contributions to the reduction of administrative burden of regulations, and any others relevant to the action plan

• as part of established appointments processes, actively ensure regulators have the right leadership to embed a pro-growth culture and high performance. Departments should actively monitor the performance of regulator leadership and follow the government’s guidance on reviews and appraisals for Arm’s Length Body Chairs, Boards, and Non-Executive Directors

C) Departments should ensure capacity, capability and prioritisation for expert sponsorship

It is vital that departments ensure they can confidently and reliably cover everything set out in this charter. Departments should:

• ensure the capability, capacity and departmental prioritisation to sponsor their regulators effectively, providing an active and strategic approach that focuses on supporting regulator culture to align with the growth mission - rather than a process-driven sponsorship model

• build and manage relationships with their regulators at all seniority levels, and across government to ensure the regulator has what they need for effective delivery – including providing clear government positions aligned between teams and departments

• help ensure regulators and sponsors work effectively across boundaries including with other regulators, departments, local authorities, or other relevant bodies, to support business, innovation and growth. This should include enabling information sharing between regulators where appropriate, and identifying and facilitating single lead regulator approaches where beneficial

• increase mutual understanding and information sharing with regulators where appropriate. Regulators and departments should share plans and priorities, including on the government’s regulatory reform workstreams, and maintain regular discussions at both working and senior levels to align objectives and resolve issues early. Encourage two-way secondments with regulators to build expertise as well as mutual understanding of organisational context, challenges and ways of working

• aim to reach consistent public narratives on joint objectives and outcomes rapidly, while respecting the regulator’s independent voice and need for mutual constructive challenge