Rachel Reeves summons regulators to No 10 in drive for cuts to red tape

Chancellor Rachel Reeves is set to convene a meeting with heads of regulatory bodies at 10 Downing Street on Monday, aiming to cut red tape and reduce regulatory costs for businesses by a quarter. The government plans to streamline environmental permitting processes, reduce bureaucracy hindering new housing and infrastructure, and unveil 60 measures jointly agreed upon by regulators to promote economic growth.

This series of initiatives coincides with the government's plan to abolish or streamline certain regulatory bodies. This follows Prime Minister Keir Starmer's announcement last week to abolish NHS England. The Conservative Party, on the other hand, argues that Labour's tax policies and trade union red tape are harming economic growth, and calls on Reeves to develop a "genuine plan for growth."

Heads of eight regulatory bodies, including Natural England and the Environment Agency, will attend Monday's meeting with the Chancellor. Reeves stated: "Today, we are taking further action to free businesses from the shackles of regulation. By cutting red tape and creating a more efficient system, we will boost investment, create jobs, and increase the income of working people."

The reforms expected to be announced include streamlining environmental regulatory processes for major projects like the Lower Thames Crossing (subject to planning approval), and future projects such as the expansion of Heathrow Airport. A review of environmental guidance, including hundreds of pages on bats, and the removal of environmental permits for some low-risk and temporary projects are also anticipated.

Furthermore, the government will introduce 60 measures agreed upon by regulators "after weeks of intense negotiations," aimed at simplifying the process of doing business in the UK. These measures include: accelerating the approval of new medicines through pilot projects, achieving parallel authorization from medical regulatory bodies; reviewing the £100 limit on individual contactless payments; simplifying mortgage rules to facilitate refinancing with new lenders and shorten mortgage terms; establishing a "concierge service" to help international financial services firms understand relevant regulations; and allowing the Civil Aviation Authority to conduct at least two large-scale drone flight trials for cargo transport in the coming months – the government states this has already reduced the transport time of blood samples between hospitals from 30 minutes to 2 minutes.

The government also announced the merger of another quasi-governmental body – the Payment Systems Regulator – into the Financial Conduct Authority. On Monday, Reeves will announce the abolition of a third body – the Regulator of Community Interest Companies – and its integration into Companies House. The Chancellor has pledged to significantly reduce the number of regulatory bodies before the end of this parliamentary term.

Shadow Chancellor Mel Stride stated that Labour's taxes and trade union red tape are preventing businesses from focusing on growth. Stride said: "With just nine days to go until Rachel Reeves' emergency budget, the Conservatives are calling on her to set out a genuine plan for growth."

Dr. Roger Barker, Director of Policy at the Institute of Directors, stated that "it is right that the government is rebalancing its strategy with a pro-business core," as "members of the Institute of Directors regularly cite compliance with burdensome regulations as one of the main factors negatively impacting their businesses."