Chancellor Rachel Reeves is wert to meet with senior representatives from eight key regulatory bodies on today, seeking to strip away bureaucracy and accelerate economic growth in the face of fresh warnings about the UK’s outlook.
The Organisation for Economic Co-operation and Development (OECD) has cut its forecasts for Britain in 2025 and 2026, citing the escalating global trade conflict and dampening prospects for a near-term recovery.
Reeves has identified growth as the government’s top priority, yet recent criticism from Conservative voices accuses Labour of stifling business expansion through higher taxes. According to the OECD, the UK economy will grow by 1.4 per cent in 2025, down from an earlier projection of 1.7 per cent, and 1.2 per cent in 2026, revised from 1.3 per cent. These figures, though muted, are still more optimistic than the Bank of England’s own estimates, which predict a 0.75 per cent rise in 2025.
The Chancellor argues that cutting red tape is essential for boosting investment, creating jobs, and easing pressure on household finances—particularly after the economy unexpectedly shrank by 0.1 per cent in January, driven largely by weaknesses in manufacturing. Her latest move follows the recent abolition of NHS England, formerly one of the world’s largest quasi-autonomous non-governmental organisations, and the announcement that more bodies could be merged or closed.
On Monday, Reeves is expected to outline a strategy that would streamline environmental regulations for major infrastructure projects, such as the Lower Thames Crossing and a possible Heathrow expansion, and do away with lengthy guidance on issues like bat protection for low-impact developments. The Environment Agency and Natural England will be among those tasked with fine-tuning environmental rules, while some minor or temporary schemes could soon be exempt from requiring permits.
Other steps include consolidating regulatory agencies themselves. The Payments Systems Regulator is already set to be absorbed by the Financial Conduct Authority, and the Regulator for Community Interest Companies will be folded into Companies House. Reeves has pledged to “significantly” reduce the overall number of regulators before the current Parliament ends, a goal welcomed by business leaders who say complex and overlapping regulations have long hampered economic activity.
Her meeting with regulators coincides with 60 newly agreed measures intended to simplify operations for firms across the UK. These range from fast-tracking medicine approvals to reviewing the £100 limit on contactless payments, and from streamlining mortgage lending rules to enabling more drone-delivery trials—something the Civil Aviation Authority says has already cut journey times for urgent hospital supplies from 30 minutes to just two.
Still, Shadow Chancellor Mel Stride contends that Labour’s tax policies and what he calls “trade union red tape” are holding the economy back. With Reeves’s emergency budget scheduled to be unveiled in just nine days, he is urging her to present what he terms a “real plan for growth.”
Among industry voices, Mark Allan, chief executive of commercial property firm Landsec, believes the government is on the right track but warns results will take time. “We’ve had regulation piled on top of regulation for years,” he says, “so while these changes are very positive, it could be three years rather than three months before we see the real benefits.”
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Reeves meets regulators to tackle red tape as growth forecasts cut again
