‘Too much bureaucracy,’ Chancellor Rachel Reeves tells regulators
The Chancellor of the Exchequer, Rachel Reeves, has made it clear that she is determined to cut down on red tape in order to stimulate economic growth. In a meeting with industry regulators, Reeves emphasized the need to streamline regulations and eliminate unnecessary bureaucracy that has been hindering progress.
Reeves pointed out that the current regulatory landscape is slowing down the process of getting things done, stating that it has been a significant factor holding back growth over the past decade. She highlighted the need to reduce duplication of work among regulators to make the system more efficient.
The Organisation for Economic Co-operation and Development (OECD) recently revised its growth forecasts for the UK, lowering expectations for 2025 and 2026. This downgrade is attributed to global economic concerns, particularly due to trade tensions sparked by US President Donald Trump’s tariffs on imports.
In response to the OECD’s forecast, Reeves acknowledged the challenges posed by increased global headwinds and emphasized the need for a more effective regulatory system to mitigate these uncertainties. She stressed the importance of cutting red tape to boost investment, create jobs, and improve the economic outlook for working people.
The government has announced a series of measures to simplify the regulatory process, including fast-tracking new medicines, reviewing contactless payment limits, and streamlining mortgage lending rules. Additionally, a ‘concierge service’ will be established to assist international financial services firms in navigating regulations more efficiently.
Furthermore, the government is restructuring regulatory bodies to reduce bureaucracy. NHS England and the Regulator for Community Interest Companies have been abolished, with plans to fold other quangos into existing regulatory entities. Reeves has committed to significantly reducing the number of regulators by the end of the Parliament.
While these measures are seen as a step in the right direction, some industry experts caution that it may take time to see tangible results. Mark Allan, CEO of Landsec, noted that the regulatory burden has been accumulating for years, and it will require sustained effort to see meaningful improvements in the business environment.
In the lead up to an emergency budget, Shadow Chancellor Mel Stride criticized Labour’s taxes and trade union red tape for hindering business growth. He called on Reeves to outline a concrete plan for economic growth to address these concerns and create a more conducive environment for businesses to thrive.
