UK chancellor calls regulators to “tear down regulatory barriers” to growth

January 23, 2025 — In a pivotal gathering yesterday, Chancellor of the Exchequer Rachel Reeves and Secretary of State for Business and Trade convened chief executives from regulatory bodies overseeing crucial sectors, including railways, water, energy, and aviation. The message was clear: economic growth is the government’s foremost priority as part of its bold Plan for Change.

This meeting marks the beginning of a series of discussions that follow a joint letter sent by the Prime Minister, the Chancellor, and the Secretary of State for Business and Trade late last year. The letter called on regulators to propose five reforms each that would support growth throughout 2024. A total of 17 regulatory bodies are set to present their proposals to the government in the coming weeks, as officials vow to explore every avenue for enhancing economic performance.

During the meeting, Chancellor Reeves stressed the critical role regulators must play in building a supportive environment that fosters innovation and attracts investment. “Your leadership is vital,” she urged, highlighting the need for a cultural shift among watchdogs. “We must move beyond an excessive focus on risk and work towards creating a framework that empowers businesses to thrive and essential infrastructure to be developed.”

While the regulators acknowledged their commitment to fostering economic growth, they also raised concerns about balancing this objective with their existing legal obligations. The Chancellor, responding to their concerns, expressed openness to discussing the historical accumulation of responsibilities that may hinder responsive action.

With ambitious ideas being discussed, the Chancellor noted several promising proposals shared by the regulators. These included initiatives aimed at enhancing responsiveness to business needs, such as streamlining planning and licensing processes, implementing grant funding via Ofwat to stimulate innovation in the water sector, and reforming energy tariffs to support consumers and businesses alike. She also emphasized innovative technologies, such as drone solutions, that could significantly accelerate public sector growth.

As the regulators committed to working alongside the government to refine their proposals, the Chancellor set a clear timeline for delivering an action plan by Spring. She reiterated her insistence that every regulator must play an active role in improving living standards.

Wrapping up the meeting, Chancellor Reeves declared, “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 has a part to play in dismantling the barriers that impede growth.”

With the government poised to catalyze reforms aimed at modernizing the regulatory framework, all eyes will be on the forthcoming strategic partnerships to assess their impact on the UK’s economic trajectory.

More News