The UK government has unveiled ambitious plans to reduce the number of regulatory bodies by the end of the current Parliament, aiming to streamline operations and boost economic growth. Chancellor Rachel Reeves has pledged to significantly cut the number of regulators as part of a broader strategy to enhance efficiency and reduce bureaucratic red tape. Key regulatory bodies, including the Regulator for Community Interest Companies and the Payment Systems Regulator, will be integrated into Companies House and the Financial Conduct Authority, respectively.
In a move to consolidate public sector bodies, the government has already dissolved NHS England, previously recognized as the world's largest quango. The decision comes amidst an economic backdrop where the OECD has revised its growth forecasts for the UK. The organization now predicts growth rates of 1.4% in 2025 and 1.2% in 2026, down from earlier projections of 1.7% and 1.3%, respectively. The global growth forecast has also been adjusted, now standing at 3.1% for 2025.
The unexpected contraction of the UK economy by 0.1% in January, primarily driven by a decline in the manufacturing sector, has underscored the urgency of the government's focus on growth. The administration is prioritizing economic expansion as its main goal, amid calls from the Conservatives for Chancellor Reeves to present a "real plan" for stimulating growth in her upcoming emergency budget.
"Rachel Reeves has nine days until her emergency budget, where the Conservatives are calling on her to set out a real plan for growth," Stride commented.
Mark Allan, CEO of commercial property firm Landsec, emphasized the need for regulatory reform to enhance business operations.
"We have been through a period over many years of having regulation laid on top of existing regulation," Allan stated.
He further noted that while progress may be slow, substantial changes could be feasible over time.
"We're starting from quite a low base, so to me this is more of a three-year project than a three-month project before we start to see that coming through."
Chancellor Reeves remains optimistic about the potential benefits of reducing regulatory complexity.
"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," she asserted.
The government also plans to revisit environmental guidelines, with potential revisions to hundreds of pages regarding bat protection. Additionally, environmental permits for certain low-risk and temporary projects will be removed to facilitate smoother project approval processes.
Amidst these developments, some criticism has emerged. Mark Allan highlighted how Labour's taxes and trade union red tape are hindering businesses' focus on growth. As the government seeks to eliminate unnecessary regulations, it aims to create an environment conducive to business innovation and expansion.
"This report shows the world is changing, and increased global headwinds such as trade uncertainty are being felt across the board," Reeves acknowledged.