UK’s Reeves Proposes ‘Radical Overhaul’ of Bureaucracy to Reduce Business Costs | Business and Economy

UK Chancellor to meet regulators on Monday to unveil ‘action plan’ for reducing bureaucratic hurdles.

The UK’s Labour Party government is preparing to announce a “radical overhaul” of bureaucracy, aiming to reduce administrative costs for businesses by 25%.

Chancellor of the Exchequer Rachel Reeves will meet with regulators on Monday to present the “action plan” for cutting red tape, according to a statement released by His Majesty’s Treasury on Sunday.

As part of the plan, the government will reduce the number of regulators, simplify the implementation of environmental regulations for major projects, and eliminate “costly red tape,” including extensive guidelines on protecting bat habitats.

The overhaul will be accompanied by 60 agreed-upon measures from regulators to improve the business environment, such as expediting the approval of new medicines and simplifying mortgage lending rules, the Treasury stated.

“By cutting red tape and creating a more efficient system, we will boost investment, create jobs, and put more money into the pockets of working people,” Reeves said.

Reeves’ announcement follows Prime Minister Keir Starmer’s recent pledge to reform the UK’s “overcautious, bloated state.”

Last week, Starmer announced plans to abolish the body overseeing England’s state-funded health service and merge the payments regulator’s responsibilities into the country’s primary financial watchdog.

Starmer’s Labour government was elected in July with a promise to revive economic growth and improve living standards after years of stagnation and decline.

Despite winning a landslide victory, Starmer’s government has faced declining support as it struggles to balance cost-cutting measures with efforts to stimulate growth.

An Ipsos poll released last month revealed that 48% of Britons believe the government is doing a poor job of running the country, while 49% think its economic plans will have a negative impact.

The UK economy contracted by 0.1% in the most recent quarter, following growth of 0.4% in December and 0.1% in November.