Regulator axed as red tape is slashed to boost growth

Regulation will be cut back as the Prime Minister sets out his latest steps to drive economic growth that puts more money in working people’s pockets.

Regulation will be cut back as the Prime Minister sets out his latest steps to drive economic growth that puts more money in working people’s pockets.

The Payment Systems Regulator (PSR) will be abolished as the latest step in reducing the burdens on business.

The Government will set out further steps to reduce red tape in the coming days.

A strong economy is at the heart of the Government’s plan to deliver security and renewal through the Plan for Change.

The PSR – which looks after payment systems like Faster Payments and Mastercard – will mainly be consolidated into the Financial Conduct Authority, making it easier for firms to deal with one port of call.

It follows complaints from businesses that the regulatory environment was too complex – with payment system firms having to engage with three different regulators, costing them time, money and resource.

This has a greater impact on smaller businesses that are trying to scale and grow – as the costs are disproportionately higher for them.

The Prime Minister wants to make regulation work for the UK – and this is the latest step in his drive to create an environment that will kickstart economic growth.

It is only by creating growth that people will see a genuine increase in their living standards – with higher wages and more money in their pocket at the end of the month.

Prime Minister, Keir Starmer said:

For too long, the previous Government hid behind regulators – deferring decisions and allowing regulations to bloat and block meaningful growth in this country.

And it has been working people who pay the price of this stagnation.

This is the latest step in our efforts to kickstart economic growth, which is the only way we can fundamentally drive-up living standards and get more money in people’s pockets.

That’s why it is the priority in the Plan for Change, and it’s why I’m not letting anything get in its way.

Chancellor, Rachel Reeves, said:

The regulatory system has become burdensome to the point of choking off innovation, investment and growth. We will free businesses from that stranglehold, delivering on our Plan for Change to kickstart economic growth and put more money into working people’s pockets.

This builds on the Government’s deregulatory agenda, which has already:

• Lifted the onshore wind ban at the stroke of a pen
• Introduced the Planning and Infrastructure Bill
• Launched the root and branch review of the water sector
• Set financial services regulators on a growth agenda
• Set up a review of all environmental regulation

Today’s announcement does not result in any immediate changes to the Payment Systems Regulator’s remit or ongoing programme of work. The regulator will continue to have access to its statutory powers until legislation is passed by Parliament to enact these changes.

In the interim period, the Payment Systems Regulator and the Financial Conduct Authority will work closely to deliver a smooth transition of responsibilities to ensure the market remains competitive.

The entire regulatory landscape will continue to be reviewed and finessed as part of a wider Government effort to kickstart economic growth and make regulators work for the country, rather than block progress.

This is the latest in a line of work to make regulators work for the country. It follows:

• A speech from the Prime Minister at the International Investment Summit where he called on the regulatory regime to fit the modern age.
• A letter from the Prime Minister, the Chancellor and the Business Secretary – calling on regulators to come up with at least five reforms each that will boost economic growth.
• The Chancellor hauling in regulators in January to have these proposals scrutinised.

source: GOV