Chancellor Rachel Reeves has urged Britain’s regulators to “tear down” barriers to promote business growth.

Ms Reeves met leading regulators yesterday to reiterate her recent calls for “ambitious reforms.”

She plans further meetings to push her Plan for Change - a move to reduce barriers holding back business growth.

She has set her sights on meeting with 17 key regulators including the FCA, Pensions Regulator and PSR (Payment Systems Regulator). She will meet with the FCA soon to discuss the way ahead. 

Yesterday she met with a number of other regulators.

Following the meeting she said: “There’s no substitute for growth. It’s the only way to create more jobs and put more money in people’s pockets, which is why it’s at the heart of our Plan for Change.     

“Every regulator, no matter what sector, has a part to play by tearing down the regulatory barriers that hold back growth. I want to see this mission woven into the very fabric of our regulators through a cultural shift from excessively focusing on risk to helping drive growth.”

Yesterday she met chief executives at watchdogs covering sectors including railways, water, energy, aviation. They were told that economic growth was the “absolute top priority” for the government.

The meeting was the first in a series following a joint letter from the Prime Minister, Chancellor and Secretary of State for Business and Trade in December, in which the government asked the regulators to each propose five reforms to support growth in the coming year. Over the coming weeks, 17 regulators will be called in to have their proposals scrutinised.    

According to the Treasury, the regulators who have so far met with the Chancellor have agreed that they have a role to play in driving growth but highlighted that there were some barriers, including the need to balance growth with their other legal responsibilities.

The Chancellor noted that the regulators’ responsibilities had accumulated over time and said she was open to hearing about where this was preventing them from taking clear, consistent and balanced actions to drive growth, the Treasury said.

The Chancellor promised the regulators that the government would work with them to develop and deliver reforms by playing its part, including making time for legislation where it is needed or using the upcoming Spending Review. She noted the Prime Minister’s promise to “rip up” regulation that blocks investment to make the regulatory regime fit for the modern age.    

The regulators agreed to continue working with the government on their proposals reform ahead of publishing an action plan in Spring. 

The Chancellor and Secretary of State for Business and Trade yesterday hosted the CEOs of the Competition and Markets Authority (CMA), Ofcom, Ofwat, Ofgem, the Office of Rail and Road, the Environment Agency and the Civil Aviation Authority (CAA) in the Treasury. Details of future meetings will be set out in due course.    

The Treasury says that in 2022/23, the largest 17 regulators across the UK had an annual expenditure of £5 billion and employed 39,000 full-time employees (F T E).

Regulators in Treasury’s Scope  

CMA (DBT)  

ICO (DSIT)  

Ofwat (DEFRA)  

Natural England (DEFRA)  

Ofcom (DSIT)  

MHRA (DHSC)  

Ofgem (DESNZ)  

FSA (DHSC)  

ORR (DfT)  

HSE (DWP)  

CAA (DfT)  

PSR (HMT)  

FCA (HMT)  

Pensions Regulator (DWP)  

PRA (HMT)  

National Institute for Health and Care Excellence (DHSC)  

Environment Agency (DEFRA)