UK regulators have been told they will have to change the way they work in order to align themselves with the government’s growth agenda.

Chancellor Rachel Reeves told regulators in a meeting in Downing Street on Monday: “There are a number of things over the last decade or so that have held back growth, and one of them – if we are honest and you know better than anyone – is the regulatory landscape.”

She went on to describe the landscape as featuring “too much overlapping regulation, too much bureaucracy,” and said this created a situation in which it was “too slow to get things done.”

In February, business secretary Jonathan Reynolds hinted at behind the scenes plans by senior ministers to reshape the UK’s regulatory landscape and bring in drastic changes.

In Monday’s meeting, the chancellor also revealed the latest moves in the government’s push to cut regulatory red tape and boost economic growth in the country.

They included “the pledge to cut the administrative cost of regulation on business by a quarter, make Britain the best place to do business and drive economic growth,” according to a government statement.

60 growth boosters

The government has also introduced 60 growth-boosting measures for the country’s regulators, which it says are “designed to make it easier to do business in the UK.” Some of those measures include:

• “Attracting more investment from international financial services firms by setting up a bespoke ‘concierge service’ to help them get to grips with UK regulations, making it easier to do business in the UK.”
• “Allowing families to manage their spending safely as the FCA reviews contactless payment limits, including the £100 cap on individual payments, while speeding up queues at checkout.”
• “Support for homeownership as the FCA simplifies mortgage lending rules, including making it easier to re-mortgage with a new lender and reduce mortgage terms.”
• “Helping start-ups secure funding to grow through the FCA issuing more notices where they are likely to approve applications from budding entrepreneurs.”

Ombudsman Service under review

The Treasury is launching a review of the UK’s Financial Ombudsman Service (FOS) to look into concerns that it was acting like a “quasi regulator”, the Financial Times has reported. According to the paper, City minister Emma Reynolds will carry out the review of the low-key regulator which has faced criticism in recent months for its role in the UK’s motor finance scandal.

According to the Treasury, “the government stands ready to legislate in order to ensure that we have a dispute resolution system in the UK which is fit for a modern economy.”

The FOS has been in the spotlight since February after its former chief executive departed unexpectedly. A few days later, its current Chair also announced she would step down after her current term ends in August.

This follows reports last month that more than one hundred UK regulators, covering sectors from financial services to fisheries, could soon be facing a government audit into their performance.

Reeves said she wanted to assess the need for some of those regulators, and could even decide to get rid of some of them to cut the burden on businesses.

The entire UK regulatory sector has been facing constant criticism and pressure from the government since October last year, when Prime Minister Keir Starmer told an International Investment Summit in London he will get rid of any regulation that stops investment and economic growth.