UK Chancellor Rachel Reeves Calls for Reduction in Bureaucracy

March 18, 2025 – London, UK – UK Chancellor Rachel Reeves has criticized the excessive bureaucracy hindering economic growth, urging regulators to streamline their processes and reduce administrative delays. Speaking on the challenges faced by businesses due to “too much overlapping regulation,” Reeves emphasized the need for regulatory bodies to work more efficiently in order to support economic development.

Reeves highlighted that slow decision-making and cumbersome regulatory frameworks have become obstacles to progress. As part of her efforts to address these concerns, she announced a series of measures aimed at reducing red tape and improving the regulatory environment for businesses.

Key Measures to Streamline Regulation

1. Performance Reviews for Regulators: Reeves unveiled plans to introduce biannual performance reviews for regulators. These evaluations will assess the effectiveness of regulatory bodies and ensure that their operations align with the government’s growth objectives. Regulators will be required to submit key performance indicators by June, with subsequent appraisals conducted by relevant government ministers.
2. Mergers and Acquisitions Oversight: The government is considering raising the threshold for intervention in mergers and acquisitions, with the Competition and Markets Authority (CMA) potentially increasing the required market share from 25%. This move is aimed at reducing unnecessary regulatory interference and fostering a more flexible business environment.
3. Regulatory Consolidation: In a bid to cut down on duplication, the government is planning to merge the functions of the Payments Systems Regulator with the Financial Conduct Authority (FCA), streamlining the regulatory landscape within the financial sector.
4. Reducing Arms-Length Bodies: The government intends to reduce the number of arms-length bodies, which are organizations that operate independently of the government, in an effort to lower costs and improve accountability.
5. Eased Environmental Regulations: To support conservation efforts, the government is relaxing some environmental regulations. Trusted partners will now be able to restore nature without needing to seek multiple permissions, thus speeding up projects that benefit the environment while maintaining essential protections.

Aiming for Business-Friendly Growth

Reeves stressed that these reforms are part of a broader strategy to reduce the regulatory burden on businesses by 25%. By cutting down on bureaucracy, the government aims to create a more growth-friendly environment that enables businesses to thrive without being held back by excessive regulation. Reeves also emphasized that these changes are essential not only for economic growth but also for enhancing the efficiency and accountability of public services.

As part of her push for regulatory reform, Reeves has made it clear that the government will continue to monitor and review regulatory practices to ensure they remain aligned with the needs of the economy and the public.

The announcement signals a shift towards a more business-friendly regulatory approach in the UK, aiming to remove barriers to growth while ensuring that essential protections and standards are upheld.

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