Rachel Reeves to meet regulators to cut red tape

A group of industry regulators will meet with Chancellor Rachel Reeves on Monday to discuss ways to accelerate economic growth. Reeves is expected to outline plans to reduce regulatory costs, including environmental regulations, and eliminate certain regulatory bodies altogether.

The move aligns with the government’s broader effort to cut bureaucracy, following Prime Minister Sir Keir Starmer’s recent decision to abolish NHS England. The Conservative Party criticized Labour’s approach, arguing that high taxes and regulatory constraints imposed by trade unions were hindering economic expansion. They urged Reeves to present a concrete strategy for growth.

Eight regulatory bodies, including Natural England and the Environment Agency, will attend the meeting. Reeves emphasized the importance of reducing red tape to stimulate investment, job creation, and economic prosperity. "Today, we are taking further steps to liberate businesses from unnecessary regulation," she said.

Monday’s discussions follow the government’s recent decision to dismantle NHS England, the world's largest quasi-autonomous non-governmental organization (quango). The government reiterated its stance that regulators should serve the public interest rather than obstruct progress.

Planned regulatory changes include streamlining environmental approval processes for major projects such as the Lower Thames Crossing (pending planning approval) and potential future projects like a Heathrow Airport expansion. The government also intends to review extensive environmental guidelines, including regulations on bats, and remove permit requirements for some low-risk, temporary projects.

In addition to these reforms, the government has secured 60 regulatory adjustments after weeks of negotiations, aiming to simplify business operations in the UK. These include:

• A pilot program to fast-track new medicines through simultaneous authorizations from healthcare regulators.
• A review of the £100 cap on individual contactless payments.
• Simplification of mortgage lending rules to ease remortgaging and shorten mortgage terms.
• The introduction of a "concierge service" to assist international financial firms with regulatory compliance.
• Approval from the Civil Aviation Authority for at least two more large-scale drone delivery trials, which have already significantly reduced hospital sample transport times.

Regarding the NHS England decision, government officials stated the move aims to eliminate redundancy and empower local leaders with more direct control. Health Secretary Wes Streeting described it as just the beginning of a broader effort to reduce bureaucratic inefficiency, hinting that more quangos may be dissolved.

In line with this approach, the government has already announced plans to merge the Payments Systems Regulator with the Financial Conduct Authority. On Monday, Reeves will confirm the abolition of another body—the Regulator for Community Interest Companies—which will be integrated into Companies House.

The chancellor has pledged to substantially reduce the number of regulatory bodies before the end of this parliamentary term.

Shadow Chancellor Mel Stride criticized Labour’s economic policies, arguing that excessive taxes and regulatory restrictions are stifling business growth. With Reeves’ emergency budget just nine days away, Stride urged her to present a definitive growth plan.

Dr. Roger Barker, policy director at the Institute of Directors, supported the government's pro-business shift, noting that excessive regulatory compliance is frequently cited by IoD members as a key obstacle to business success.