Some regulation is essential if market economies are to work efficiently and effectively, in the public interest. At the same time, ill-conceived regulation can seriously damage economic growth. This chapter reviews the international research on regulation, enterprise and competition and reviews recent initiatives in the UK intended to reduce regulatory costs. The research confirms the importance of evidence-based policy-making. Reflecting this, recent regulatory reform in the UK has focused on reducing the incidence of poorly designed and implemented regulation, by improving the policy-making process within government.