The chancellor, Rachel Reeves, has doubled down on her pledge to trim the number of regulators across the UK, arguing that overregulation is stifling business activity and growth. Speaking to private equity bosses in London, Reeves said her plan is part of a broader push to rejuvenate Britain’s struggling economy.
The chancellor has not been shy about her stance. Back in July, she claimed regulators were acting like a “boot on the neck” of business. At the British Private Equity & Venture Capital Association (BVCA) summit on Wednesday, she reminded the audience of her recent actions: removing the chair of the competition watchdog, scrapping the payments regulator, and imposing tight limits on the Financial Ombudsman Service. However, she insisted that the job was far from finished.
“I want to take out more regulators; there’s still too many,” Reeves told the gathering of investment firms.
Although she declined to name specific regulators next in line, Reeves indicated that her approach toward environmental oversight had shifted. Once seen as a “blocker of growth,” she said environmental regulations are now being reshaped to encourage development.
Focus Turns To Environmental Oversight Changes
She pointed to the Department for Environment, Food and Rural Affairs (Defra), now under the leadership of former City minister Emma Reynolds following last week’s cabinet reshuffle. According to Reeves, the department is working to “facilitate growth rather than find reasons to say no to development, whether that is [through] Natural England, or the Environment Agency.” She added that the department was “moving in the right direction.”
Her appearance at the BVCA summit comes as the government seeks to reassure investors and business leaders ahead of the autumn budget set for November 26. Concerns are mounting over a potential £40bn hole in the public finances, with speculation swirling that new tax hikes on banks, property, and rental income may be announced.
Reeves reassured the audience that her broader reforms aim to strip away obstacles to growth. “We will make it easier to do business in Britain, ripping out those things that have been blocking growth and instead, backing the builders,” she said.
The chancellor also highlighted the leadership shake-up at the Competition and Markets Authority (CMA). In January, she ousted the chair, Marcus Bokkerink, replacing him with Doug Gurr, former boss of Amazon UK, on an interim basis. Reeves claimed this move had already produced tangible benefits.
“That leadership shake-up … had led to a massive step-change that was welcomed by firms. Previously, businesses, all the time – especially in tech – had been raising concerns about the CMA. That has changed a lot.”
Chancellor Rachel Reeves
While acknowledging that more changes may still be required within the City, Reeves expressed support for Financial Conduct Authority (FCA) chief executive Nikhil Rathi, who was given a second five-year term in April. She praised his response to her push for regulatory reform.
“When I wrote to regulators and asked: ‘What can you do to drive growth?’ … Nikhil responded positively to that. And that’s why we reappointed him to carry on heading up FCA.”
Chancellor Rachel Reeves
However, Reeves reserved some of her strongest criticism for the Financial Ombudsman Service, which has faced complaints from lenders over its role in the car finance scandal.
“We’re severely constraining the Financial Ombudsman, which I think is very important: they are not a regulator, they’re supposed to be a resolver of complaints but their role has grown much too much.”
Chancellor Rachel Reeves
Reeves concluded her address by insisting that her reforms are part of a wider plan to shift the business climate in Britain. “The regulatory reforms are very welcomed, and I think, needed for business,” she said, doubling down on her determination to streamline oversight and boost economic growth.
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