Chancellor meets regulators to reduce red tape on businesses

Chancellor of the Exchequer, Rachel Reeves, has met with leaders of UK regulators amid plans to cut red tape on businesses.

The Chancellor’s plans look to ensure the UK’s regulatory environment supports economic growth and does not place unnecessary costs or bureaucratic burdens on businesses that slow down investment and decision making. Proposals streamline the duties of regulatory bodies, while in planning applications, developers will have a single point of contact in securing sign off from environmental regulators, rather than needing to negotiate with multiple bodies. Plans to reduce the number bodies deemed statutory consultees in the planning process have already been announced as part of updates to planning rules.

Some regulatory bodies will also be merged into larger organisations, such as the Payment Systems Regulator being consolidated into the Financial Conduct Authority, and the Regulator for Community Interest Companies becoming part of Companies House. The changes aim to reduce the need for businesses to duplicate disclosures with multiple organisations.

Following negotiations, regulators have signed up to 60 measures aimed at driving growth and accelerating processes. These include a pilot of parallel authorisations for new medicines, trials for drone deliveries, and a simplification of mortgage lending rules.

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.”

Business groups have broadly welcomed the Chancellor’s plans to streamline the UK regulatory environment.

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.”

Craig Beaumont, Executive Director of the Federation of Small Businesses, said:

“Today’s announcement shows the Chancellor is willing to put in the hard yards to let businesses do what they do best. Business owners are not bureaucrats. The delays, time wasting and sheer stress from having to handle layers of poorly designed regulation makes it harder and harder for small businesses to grow, generate jobs and provide for their customers.

“Every month a project might be delayed makes it harder to go ahead, and every second wasted on unnecessary forms is time away from business, staff and family. We have made clear recommendations to CEOs of the regulators visiting No.10 today, to transform regulation so they help, not hinder, small business growth and investment. This is a necessary pre-condition for increasing living standards, building a stronger economy and creating new jobs.”