The government’s new Better Regulation Action Plan outlines aims to cut the number of regulators and streamline the legal duties of the regulators that remain in place. 

Examples provided by the government include “a streamlined process for environmental regulations” that might be applied to major projects, such as the Lower Thames Crossing and the Heathrow expansion, requiring a single point of contact, rather than needing planning approvals from multiple authorities. 

The Prime Minister’s abolition of NHS England is another reflection of this agenda to create a “lean and agile” state. The plan broadly builds on the Smarter Regulation project started by the Department for Business and Trade (DBT), but also breaks down plans for the regulation of various types, such as sustainability and financial services. It highlights the health and planning systems as initial areas of focus.

Specific targets

Measures announced in the plans include a bespoke ‘concierge service’ for international financial services firms to adapt to UK regulations, to encourage more inward investment into the UK; a review of the contactless payments limits by the Financial Conduct Authority (FCA); and measures to encourage more funding applications for start-ups. 

“Regulation can be a significant break on growth,” says John Boulton, ICAEW’s Director, Public Policy. “Although smart regulation is often essential for the public good, regulators shouldn’t be able to default to easy, risk-averse options. Merely requiring a regulator to ‘have regard’ to a growth objective is too vague; instead it should be a central focus. The government is right to focus on regulation in its quest for stronger economic growth, and we look forward to reviewing the details and working with them to ensure the action plan is successfully implemented.”

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. 

Planning for growth

Chancellor of the Exchequer Rachel Reeves says: “The world is changing and that’s why we must go further and faster to deliver on our Plan for Change to kick-start economic growth.”

Planning measures include simpler application processes for environmental permits. On low-risk and temporary projects, the need for a permit will be removed. This will go through a single lead environmental regulator to further speed up approvals.

The government will consult on allowing environmental regulators to have more flexibility when it comes to low-risk activities, with more focus on high-impact, high-priority areas, such as low-carbon infrastructure. Businesses will agree targets that regulators will be held to through six-month reviews. 

While the Payment Systems Regulator is being consolidated into the FCA, the Regulator for Community Interest Companies will be merged with Companies House. 

“The Action Plan builds on many of the themes highlighted in DBT’s ‘smarter regulation’ work, including the need for reform of the UK’s regulatory regime and the importance of applying various principles of good regulation, which is welcome,” says Charles Worth, ICAEW’s Head of Business Law. “It also puts flesh on the bones by outlining measures for concrete change across a range of regulated activities. It is important that this momentum is maintained, given the magnitude and complexity of the challenges involved.”