Chancellor Rachel Reeves will today order a 25% cut in the cost regulating business as part of her plan to accelerate growth.

Regulators will be summoned to Downing Street to be told that red tape is tying up planning and delaying vital projects.

A streamlined process for environmental regulations will also be put in place for major projects, creating one point of contact to end the merry-go-round of developers seeking planning approvals from multiple authorities who often disagree with each other. 

Ms Reeves says her Action Plan will save businesses across the country billions of pounds by cutting the number of regulators, streamlining their core legal duties and cracking down on complexity in the regulatory system.

The Plan comes after the Prime Minister set out his vision for a more lean and agile state in a speech last week, abolishing the world’s biggest quango – NHS England – to scrap duplication and give more power and tools to local leaders so they can better deliver for their communities.

The Prime Minister and Chancellor are clear that regulators must work for the people of Britain, not get in the way of progress. 

Following weeks of intense negotiations, watchdogs have signed up to 60 growth boosting measures – including: 

• Fast-tracking new medicines to market through a new pilot to provide parallel authorisations from key healthcare regulators, so that patients can access the medicine they need quicker;    
• Attracting more investment from international financial services firms by setting up a bespoke ‘concierge service’ to help them get to grips with UK regulations, making it easier to do business in the UK;  
• Paving the way for package deliveries by drone, as the Civil Aviation Authority permits at least two more large drone-flying trials in the coming months – which have already helped cut travel times for blood samples from 30 minutes down to 2 minutes between hospitals – and streamlines the regulatory process for manufacturing drones;   
• Allowing families to manage their spending safely as the Financial Conduct Authority reviews contactless payment limits, including the £100 cap on individual payments, while speeding up queues at checkout. 
• Support for homeownership as the Financial Conduct Authority simplifies mortgage lending rules, including making it easier to re-mortgage with a new lender and reduce mortgage terms. 
• Helping start-ups secure funding to grow through the Financial Conduct Authority issuing more notices where they are likely to approve applications from budding entrepreneurs. 

The Government will continue to work closely with regulators to ensure they are regulating for growth, not just risk.

Cabinet Ministers will report back to the Chancellor in the summer with further suggestions for streamlining the regulatory landscape and better regulation will be a key part of the upcoming Modern Industrial Strategy.   

Ms Reeves said: “The world is changing and that’s why we must go further and faster to deliver on our Plan for Change to kickstart economic growth. Today we are taking further action to free businesses from the shackles of regulation. By cutting red tape and creating a more effective system, we will boost investment, create jobs and put more money into working people’s pockets.” 

Business and Trade Secretary Jonathan Reynolds said: “Unnecessary regulation chokes competition and stifles business – that’s why we’re taking action to unleash industry right across the UK to go for growth. 

“With a regulatory system that encourages innovation and economic growth combined with our Industrial Strategy, our Plan for Change can make the UK the best place to startup, invest and thrive.” 

The new system is led by Lord Willetts as chair of the Regulatory Innovation Office (RIO).

Rain Newton-Smith, CEO of the CBI, said: “The UK’s Gordian knot of regulations hinders investment with compliance costs that are too high, leaving us trailing the international competition. Today’s announcement signals a shift towards a more proportionate, outcomes based approach that should deliver more sustainable growth and investment.

“Smart, proportionate regulation could be the UK’s international calling card once more, bringing confidence and easing the burden on many sectors.”

Debbie Crosbie, CEO of Nationwide, said: “Clear and predictable rules will help firms focus on growth and innovation for the benefit of consumers. The target to reduce the administrative cost of regulation by 25% could make a meaningful difference to the regulatory burden and economic growth.”