Chancellor Rachel Reeves is set to meet with industry regulators on Monday to discuss plans aimed at reducing bureaucracy and easing regulatory costs for businesses.
The meeting aligns with the government’s broader effort to streamline oversight, accelerate economic growth, and encourage investment.
Reeves is expected to outline measures that include reducing the number of regulatory bodies, reviewing environmental guidelines, and eliminating redundant legal duties for regulators. The move follows Prime Minister Keir Starmer’s recent announcement to abolish NHS England in a bid to cut administrative costs and improve efficiency.
“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,” Reeves stated ahead of the meeting.
The eight regulators attending the discussion include:
- Financial Conduct Authority (FCA)
- Prudential Regulation Authority
- Environment Agency
- Natural England
- Medicines and Healthcare products Regulatory Agency (MHRA)
- Information Commissioner’s Office
- Ofgem (energy regulator)
- Ofwat (water regulator)
One of the key areas under review is environmental regulation, with plans to simplify guidance to prevent delays in major infrastructure projects. Projects such as the Lower Thames Crossing and a potential Heathrow expansion could benefit from streamlined approval processes. The government also aims to remove environmental permits for certain low-risk and temporary projects.
Additionally, regulators overseeing financial services, energy, and water industries are expected to see their legal duties trimmed to eliminate unnecessary compliance requirements. Reeves has already announced the abolition of the Payment Systems Regulator, which will be folded into the Financial Conduct Authority. On Monday, she will also confirm the closure of the Regulator for Community Interest Companies, which will be merged into Companies House.
Business leaders have largely welcomed the move, viewing it as a step toward a more business-friendly regulatory environment. Dr. Roger Barker, policy director at the Institute of Directors, said that compliance with burdensome regulation is a frequent concern among businesses, adding that the government’s shift toward a pro-business approach is “appropriate.”
Rain Newton-Smith, CEO of the Confederation of British Industry, described the UK’s regulatory system as a “Gordian knot” that hinders investment. She expressed support for the reforms, emphasizing the need for a “proportionate, outcomes-based approach” to regulation.
However, critics argue that reducing oversight could weaken consumer protections and environmental safeguards. The opposition has also questioned whether the proposed changes will be enough to address the broader economic challenges the UK faces.
