Discussions are taking place in a meeting between industry regulators and the chancellor on Monday to explore measures aimed at accelerating economic growth.
Rachel Reeves is expected to present additional plans to reduce regulatory costs, including environmental initiatives, and abolishing certain regulatory bodies entirely.
This comes as the Organisation for Economic Co-operation and Development (OECD) revised down its growth predictions for the UK in 2025 and 2026 due to concerns over the escalating trade war impacting the global economy.
The government has prioritized boosting growth, while the Conservatives criticized Labour’s taxes for hindering growth and urged Reeves to outline a comprehensive plan.
At the start of the Monday meeting, Reeves pointed out the excessive bureaucracy hindering efficiency and progress, stressing the need to address regulatory challenges that have impeded growth over the past decade.
Reeves affirmed that discussions would focus on streamlining regulatory efforts to minimize duplication of work.
In its latest forecast, the OECD downgraded its growth projections for the UK, foreseeing slower growth rates for 2025 and 2026 compared to previous estimates.
Despite the OECD’s forecast adjustments, Reeves emphasized the need for a proactive approach to navigate through the evolving global economic landscape marred by trade uncertainties.
The unexpected contraction of the UK economy in January highlighted the pressing need to enhance growth prospects through effective regulatory reforms.
Anticipated government announcements include initiatives to streamline environmental regulations for major projects like the Lower Thames Crossing and future endeavors, alongside reviewing environmental guidelines to facilitate investments and job creation.
Additionally, 60 regulatory measures agreed upon by authorities aim to enhance the business environment in the UK, with specific actions such as fast-tracking healthcare authorizations and simplifying mortgage lending rules.
Recent government decisions to abolish certain quangos, like NHS England and streamline regulatory bodies, underscore the commitment to reducing bureaucracy and fostering a conducive environment for business growth.
The chancellor’s pledge to decrease the number of regulators signals a decisive action to promote efficiency and remove obstacles hindering economic progress.
Shadow chancellor Mel Stride criticized Labour’s taxation policies and regulatory burdens, emphasizing the need for a comprehensive growth strategy.