Chancellor Rachel Reeves is set to meet UK regulators on Monday, reinforcing her demand for a streamlined regulatory framework to slash bureaucratic red tape and accelerate economic momentum. With businesses burdened by protracted decision-making processes, Reeves argues that the government’s reform agenda will eliminate costly delays and unlock billions in potential savings.
At the core of her initiative lies a radical restructuring of the regulatory landscape, which could see some regulators abolished entirely. Reeves is expected to lay out detailed plans to cut regulatory costs by a quarter, marking a decisive shift toward simplified, faster approvals across industries.
A key target is the logjam stalling major infrastructure projects, particularly when environmental concerns trigger bureaucratic entanglements. Reeves cited the drawn-out HS2 bat tunnel dispute—a prolonged battle between environmental regulators, local councils, and government bodies—as a prime example of how inefficiency fuels spiraling costs and endless setbacks.
One proposed measure to combat this involves consolidating environmental permits under a single governing body, ensuring private-sector contractors face fewer hurdles. Low-risk and temporary projects may no longer require permits.
Reeves’ reformist agenda follows last week’s bombshell announcement that NHS England—the world’s most enormous quango—will be scrapped in a bold move to overhaul the health service.
Reeves said: “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.”
Now, she is set to meet representatives from eight key regulatory bodies, including the Financial Conduct Authority (FCA), Prudential Regulation Authority, Environment Agency, Natural England, and the Information Commissioner’s Office.
And the cuts won’t stop there. In line with Prime Minister Keir Starmer’s directive to simplify regulation, the Payments Systems Regulator is already slated for absorption into the FCA. On Monday, Reeves is expected to confirm the abolition of a third quango—the Regulator for Community Interest Companies, folding its responsibilities into Companies House. Ministers have been instructed to return with additional proposals by summer on further regulatory bodies that could face consolidation—or outright elimination.
Beyond restructuring, Reeves is poised to unveil a sweeping package of 60 measures to inject vitality into the UK economy. These include:
Fast-tracking new medicines to accelerate their market entry.
Re-evaluating the £100 contactless payment limit to enhance consumer convenience.
Simplifying mortgage regulations to improve accessibility.
Launching two large-scale drone-flying trials to pave the way for commercial drone deliveries.
This aligns with the government’s broader economic revival efforts. Despite dodging a recession in late 2024, the UK economy remains fragile. Consumer and business confidence is subdued, unemployment concerns are mounting, and GDP figures released last week showed a 0.1% contraction in January.
Rain Newton-Smith, chief executive of the Confederation of British Industry, said the UK’s “Gordian knot of regulations” hindered investment with compliance costs that were too high, “leaving us trailing the international competition.”
She said: “Today’s announcement signals a shift towards a more proportionate, outcomes-based approach that should deliver more sustainable growth and investment.”
However, the Conservative shadow chancellor, Mel Stride, said Reeves “and her job-destroying, tax-hiking budget” were “the biggest barrier to growth” in the UK.
He added: “For as long as businesses remain under the strain of Labour’s taxes and trade union red tape, they will be unable to focus on the priority of growth.”
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