Rachel Reeves is preparing to axe a significant number of regulators, as the government continues its war on red tape .
It comes as part of an attempt to kickstart economic growth and “free businesses from the shackles of regulation”, the chancellor said.
Regulators have been summoned to Downing Street On Monday, there’s a meeting with Ms Reeves during which she is anticipated to provide further details about the government’s plan to reduce the cost of regulations by 25% and outline strategies for either downsizing or eliminating these regulatory entities altogether.
The meeting follows the the announcement last week that NHS England – known as the world’s biggest quasi-autonomous non-governmental organization (quango) – would be abolished as part of initiatives to reduce expenses and stimulate economic development.
Ms Reeves stated: "Today we are implementing additional measures to liberate businesses from the constraints of red tape."
Through reducing bureaucratic regulations and establishing a more efficient system, we aim to increase investments, generate employment opportunities, and add more funds to the wallets of working individuals.
Along with scrapping NHS England, the government has also declared intentions to integrate the Payment Systems Regulator into the Financial Conduct Authority (FCA), and Ms Reeves is anticipated to pledge to eliminate several regulators throughout the parliamentary term.
On Monday, she will announce the abolition of a third quango – the Regulator for Community Interest Companies, which will be folded into Companies House – and ministers will be instructed to report back to the chancellor by the summer with further suggestions for quangos that could be culled.
It is anticipated that the government will eliminate a considerable amount of regulators; however, the exact figure of those set to be removed remains unconfirmed as of now.
The gathering will see eight regulatory bodies represented, among which are the FCA, the Environment Agency, Natural England, and the Health and Safety Executive.
The chancellor plans to reveal at Monday’s meeting a set of 60 initiatives that Britain’s regulatory bodies have consented to implement in order to stimulate economic expansion.
This encompasses expediting the approval of new medications, reassessing the £100 cap on contactless transactions, streamlining mortgage regulations, and conducting two significant drone operation trials to facilitate future drone delivery services.
These measures came about following a request from the prime minister towards the end of last year for regulators to produce "specific suggestions" aimed at stimulating growth, as part of the government's efforts to revitalize Britain’s faltering economy.
Despite the UK evading a recession during the latter part of 2024, economic performance remains sluggish with data from last week indicating a 0.1 percent decrease in GDP for January.
Several modifications, especially those concerning environmental rules, are anticipated to accelerate the completion of significant infrastructural initiatives like the much-delayed Lower Thames Tunnel and the proposed third runway at Heathrow Airport.
Rain Newton-Smith, CEO of the CBI, greeted the announcements positively, stating: "TheUK's complex web of regulations impedes investment due to excessively high compliance costs, putting us behind international competitors."
Today’s declaration marks a move towards a more balanced, outcome-focused strategy that aims to foster more enduring development and investments.
However, Conservative shadow chancellor Mel Stride stated that Ms Reeves along with "her budget that destroys jobs and raises taxes" was "the greatest obstacle to growth" in the UK.
He stated: "As long as companies continue to feel the pressure from Labour's taxation policies and the bureaucratic burden imposed by trade unions, their ability to concentrate on fostering growth will be hindered."
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