I’ll cut regulation and unleash the animal spirits of the private sector
In an exclusive article for City PM, the Prime Minister says “it is an outrage that government does not know how much it costs business to comply with the regulations imposed on them” and declares that his “will be the first government to baseline these costs” – before slashing them.
Last week, I set out my plans for a more active and agile state that delivers for the British people. This government will be better faster, and more effective at driving resources and performance at the frontline of public services.
But that is only half of the equation. To raise living standards and deliver on our plan for change, we need a thriving economy that rewards those that take risk, creating jobs and opportunities up and down the country.
To deliver economic growth – the number one mission of this government – we need to unleash the power of the private sector. Entrepreneurs who work day and night to build a business from scratch. Family companies that have passed know-how across the generations. Iconic British companies employing thousands of people across all sectors. Investors who provide the capital and expertise that fuels growth and innovation.
Red tape has increased complexity and cost
The state should be enabling these businesses, making it easier for them to do what they do best. Instead, successive governments have shied away from this task, and instead layered regulation upon regulation on companies and investors, increasing complexity and cost. Sensible and proportionate rules are essential for a dynamic economy. But Britain today is a harder place to do business that it was a decade ago, and I’m determined to change that.
Today, the Chancellor will announce our regulatory action plan – and action is the key word. We’re implementing specific measures to remove unnecessary environmental regulations that delay the essential infrastructure and housing our country needs. We eliminated one regulator last week, and we are kicking off a short, sharp process that will identify others to be cut or merged to simplify our system and reduce duplication.
I have already made clear to our business-facing regulators that they need to place more emphasis on growth and investment, and we are streamlining their duties to better reflect this. I am pleased that the CMA and FCA have already begun making moves in this direction, and both have agreed to go further in the months ahead. They, and others, will be held accountable for their performance. Our plan will codify clear KPIs for our regulators on sticking to agreed timelines and processes: failure to do so will have consequences.
Britain today is a harder place to do business that it was a decade ago, and I’m determined to change that
It is an outrage that government does not know how much it costs business to comply with the regulations imposed on them. We will be the first government to baseline these costs, and as I announced last week, by the end of the parliament we will have cut them by 25 per cent. And instead of making it harder to start a new business that might disrupt the status quo, regulators are committing to sandboxes that encourage innovation.
This is just the beginning. Reshaping our state, our regulatory system, our economy, is not the work of weeks and months. It will take years of discipline, focus and a willingness to make tough choices. But my government is taking on that challenge to bring back the animal spirits of the private sector, and to make Britain the best place in the world to start and build a business.
The Rt Hon Sir Keir Starmer KCB KC MP, Prime Minister