Chancellor Rachel Reeves is summoning regulators for a meeting on Monday as the government pushes ahead with plans to cut bureaucracy and slash the cost of regulation for businesses by a quarter.
The government is also rolling out plans to streamline environmental permits, remove barriers to new housing and infrastructure projects, and introduce 60 regulator-agreed measures aimed at boosting economic growth. Reeves’s moves come hot on the heels of Prime Minister Sir Keir Starmer’s decision to scrap NHS England last week as part of a wider effort to overhaul public sector management, reported the Guardian.
Critics from the Conservative Party argue that Labour’s tax policies and trade union rules are stifling growth and have called on Reeves to present a “real plan.” However, Reeves hit back, insisting: “Today we are taking further action to free businesses from the shackles of regulation. By cutting red tape and creating a more effective system, we will boost investment, create jobs, and put more money into working people’s pockets.”
As part of this drive, the government is looking to speed up the regulatory process for major projects, including the Lower Thames Crossing (pending planning approval) and potential expansions at Heathrow. Environmental guidance, including hundreds of pages of paperwork on bats, is under review, and some low-risk, temporary projects will no longer require environmental permits.
Among the 60 new measures agreed with regulators after weeks of intense negotiations, key changes include:
A pilot scheme fast-tracking new medicines through parallel authorizations from healthcare regulators.
A review of the £100 cap on individual contactless payments.
Simplified mortgage lending rules to make it easier for homeowners to switch lenders and reduce mortgage terms.
A ‘concierge service’ to help international financial services firms navigate UK regulations.
More large-scale drone-flying trials to cut transport times for medical deliveries, with previous trials reducing hospital blood sample transport from 30 minutes to just two.
The shake-up follows last week’s decision to abolish NHS England, with ministers arguing that the move will scrap duplication and give local leaders more control. Health Secretary Wes Streeting described it as “the beginning, not the end” of efforts to reduce bloated bureaucracy, hinting that more quangos could be on the chopping block.
In line with this, the government has already announced that the Payment Systems Regulator will be merged into the Financial Conduct Authority. On Monday, Reeves will also confirm the abolition of a third regulator—the Regulator for Community Interest Companies—which will be absorbed into Companies House.
Reeves has pledged to significantly cut the number of regulators before the end of this Parliament, arguing that a leaner system will help businesses thrive.
Shadow Chancellor Mel Stride has accused Labour of holding back businesses with excessive taxes and regulation, warning that Reeves has just nine days until her emergency budget to set out a real plan for growth.
Dr Roger Barker, policy director at the Institute of Directors, acknowledged the importance of this shift, stating: “Compliance with burdensome regulation is frequently cited by IoD members as one of the top factors having a negative effect on their businesses.” He welcomed the government’s rebalancing towards a more pro-business approach.
