Analysis suggests Labor plans more than 60 increases in regulation that would cost businesses tens of billions more.
The Institute for Economic Affairs (IEA) said Labor would increase red tape across a range of areas from speeding up the ban on petrol cars to introducing energy efficiency standards in rented homes.
In a briefing shared with The Telegraph, the IEA said the manifestos of the two main parties proposed “extensive regulatory measures”.
But while there had been “significant public debate” about each party’s tax and spending measures, it said there had been “a lack of scrutiny as to the business impact of the proposed regulatory changes”.
According to an analysis by the think tank, Labor proposed 62 policies that would increase the regulatory burden on businesses and 13 that would reduce it.
The IEA said Labour’s regulatory measures are “likely to have more significant costs and potential benefits” than the party’s five tax hike measures, which cost Labor £8.5 billion a year.
Labour’s new fossil fuel ban
Meanwhile, the think tank counted 29 measures to increase regulation and 20 that would reduce the regulatory burden in the Tory manifesto.
While the IEA said it was “not possible to fully analyze the various proposals and benefits”, not least because many of the measures “lacked detail”, it said the costs were likely to be significant.
For example, the Center for Economic and Business Research has estimated that Labour’s policy to restore the 2030 ban on new petrol and diesel cars will cost an estimated extra £1,000 per household per year from 2022 to 2050.
As for Labour’s policy to require privately rented homes to meet minimum energy standards by 2030, a government impact assessment found the measure would cost £12.2bn.
Another government assessment of the impact of the Tenancy Act (Reform) – legislation banning “no-fault” evictions committed to by both Labor and the Conservatives – suggested it would cost businesses £1 billion.
The IEA said its list of new regulations covered business costs rather than “how government is run”, meaning the Tories’ ban on mobile phones in school during the day, for example, did not appear on the lists. The list also omits measures related to individual criminal laws or tax proposals.
Ban on drinking caffeine for young people
New regulatory burdens in Labor’s manifesto include a ban on highly caffeinated energy drinks for under-16s, a ban on dismissals and re-hiring, applying a minimum wage to all age groups and introducing disability and ethnic pay gap reporting requirements by origin.
The new regulations would create costs in a number of different ways, with some requiring companies to spend more on new buildings or increasing labor costs, while others would require additional paperwork.
Conservative regulations include the party’s plan for a “Pumpwatch” system, which would require petrol retailers to share live price information and ban new waste incinerators.
Matthew Lesh, the IEA’s director of public policy and communications, who authored the analysis, said: “We’ve heard a lot in this election campaign about taxes and spending promises with the expectation that fiscal policy will be fully charged.
“However, neither party has attempted to calculate the impact of their far more numerous regulatory proposals. Britain’s prosperity depends not just on how the government taxes and spends, but also on the myriad ways in which it controls our lives and restricts business activity.
“Both major parties have put forward some commendable proposals, particularly on reforming the planning system to enable homes to be built and speed up the delivery of infrastructure.
Terrorism prevention for night spots
“However, the statement issued last week also contains dozens of policies which together impose costs of tens of billions of pounds. This will inevitably lead to higher prices for families, stifling of business innovation and lower wages for workers.
“Despite Labour’s new moderate and sensible image, its manifesto is packed with major new regulatory proposals, from a permanent ban on fracking to expanded equal pay obligations and strict energy efficiency standards for rentals.
“These policies, while well-intentioned, carry significant burdens that cannot be overlooked.
He added: “The Conservatives have proposed fewer measures than Labour. Yet some, such as mandatory terrorist prevention plans for night-time businesses, will introduce significant new difficulties.’
A Tory spokesman said: “Our Smarter Regulation program – launched over a year ago – has already saved 50 million hours of administrative time for businesses, saving them an estimated £1 billion.
“We have repealed or reformed 2,000 EU laws since Brexit and are on track to repeal or reform more than half of the 6,000 laws we inherited over the 47 years we have been in the EU.
“And we’re going even further – scrapping the EU’s old ‘nutrition neutrality’ rules to unlock 100,000 new homes immediately, remove more companies from burdensome reporting requirements and build a highly attractive business environment by creating more Freeports. “