Chancellor, Rachel Reeves is set to announce 60 measures aimed at reducing regulatory burdens and stimulating economic. With between 100 and 130 regulatory bodies currently in the UK, the Government plans to significantly cut this number. The new ‘radical action plan’ will be published following consultations with regulators, as the Government seeks to address deteriorating economic forecasts.
Regulators will be summoned for performance reviews twice a year from the relevant Secretary of State and will be judged against a set of targets agreed with the businesses they affect, which could include how quickly they make decisions on planning applications and new licenses for businesses and products. The regulators will immediately begin discussing these targets with businesses and publish them by June.
Following the decision to primarily consolidate the Payment Systems Regulator into the Financial Conduct Authority, the Regulator for Community Interest Companies will be folded into Companies House to avoid duplicative disclosure requirements for companies which provide a benefit to their community. Cabinet ministers will report back to the Chancellor by the summer with further suggestions to cut numbers and create a more effective system.
Major regulators will also have their legal duties slimmed down, so that they do not waste time satisfying redundant duties that do not align with their core purpose or the public’s priorities. This work will begin with the financial services regulators, energy watchdog Ofgem, water regulator Ofwat and the Office for Road and Rail.
The Treasury will also explore ways to streamline financial services regulators’ ‘have regards’ to improve predictability and business confidence. The role of the Financial Ombudsman Service will also be reviewed to ensure that it is acting as an impartial service that provides quick and predictable resolutions to disputes – not as a quasi-regulator.
Chancellor of the Exchequer Rachel Reeves said:
“The world is changing and that’s why we must go further and faster to deliver on our Plan for Change to kickstart economic growth. 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.”
Business and Trade Secretary Jonathan Reynolds said “Unnecessary regulation chokes competition and stifles business – that’s why we’re taking action to unleash industry right across the UK to go for growth.”
“With a regulatory system that encourages innovation and economic growth combined with our Industrial Strategy, our Plan for Change can make the UK the best place to startup, invest and thrive.”
Kate Nicholls, Chief Executive of UKHospitality, said:
“A plan to cut red tape and reduce the burden on businesses is long overdue.”
“In sectors like hospitality, businesses have been struggling with too much cost and too many regulations for decades, and it has held back growth.”
“If we want to kickstart the economy, deregulating those already over-stretched sectors should be the focus. This should include a review of upcoming legislation, like the ill-thought through Extended Producer Responsibility scheme.”
“Rewiring the nation’s regulators to perform more effectively is critical, and this should include a pivot to help businesses reduce costs, ensure proportionate competition in the market and taking a more common-sense approach to assessment and enforcement of regulation.”
Rain Newton-Smith, CEO of the CBI, said:
“The UK’s Gordian knot of regulations hinders investment with compliance costs that are too high, leaving us trailing the international competition. Today’s announcement signals a shift towards a more proportionate, outcomes based approach that should deliver more sustainable growth and investment.”
“Smart, proportionate regulation could be the UK’s international calling card once more, bringing confidence and easing the burden on many sectors.”
“This announcement builds on the welcome commitment from the Prime Minister to reduce the thicket of regulation, and it is critical that this approach is reflected across the board including finding a landing zone for the Employment Rights Bill that supports growth, investment, and jobs.”