New Measures
In addition to scrapping NHS England, the government’s action plan includes the move to merge the Payment Systems Regulator (PSR) into the FCA to simplify regulation. This is meant to address business concerns about dealing with multiple regulators, which they say adds unnecessary costs and delays.Following weeks of negotiations, the FCA alongside other regulators, have agreed to implement a series of new measures to boost growth.
The FCA will assess whether the current £100 limit on contactless payments should be revised and will make it easier for homeowners to remortgage with new lenders, reducing mortgage terms. It will also simplify funding applications for entrepreneurs.
Other measures include fast-tracking new medicines, a new ‘concierge service’ to help overseas investors navigate UK regulations and delivery drone trials.
The Civil Aviation Authority will greenlight at least two large-scale drone trials to reduce medical sample transport times.
Ministers also seek to simplify environmental regulations for major projects like the Lower Thames Crossing and potentially Heathrow expansion. The new system will provide a single point of contact, eliminating the need for developers to seek approvals from multiple authorities.
However, Business Secretary Jonathan Reynolds said the overhaul will remove “unnecessary regulation” that chokes competition and stifles business.
Among those summoned to meet with Reeves and discuss cuts to regulation costs are the Financial Conduct Authority (FCA), the Environment Agency and Medicines and Healthcare products Regulatory Agency (MHRA).
Business Chiefs React
Business leaders welcomed the government’s latest announcement on regulatory reforms, praising efforts to cut red tape and boost investment.Shevaun Haviland, director general of the British Chambers of Commerce, called the reforms a “real potential” game-changer for businesses.
She particularly welcomed plans to fast-track the Lower Thames Crossing and Heathrow expansion. With firms facing rising costs, she noted that a 25 percent reduction in regulatory expenses would provide much-needed relief, she said.
Rain Newton-Smith, CEO of the Confederation of British Industry, described the UK’s regulatory framework as a “Gordian knot” hindering investment. She stressed the need for smart regulation to restore the UK’s global competitiveness.
Commenting on the figures, shadow chancellor Mel Stride said that Labour’s taxes and trade union red tape were preventing businesses from focusing on growth.
Cabinet ministers are due to report back to Reeves this summer with further proposals to simplify the regulatory landscape.