Reeves Urges Regulators to Boost Economic Growth

LONDON (Reuters) – Finance minister Rachel Reeves has called on Britain’s regulators to eliminate barriers hindering economic growth, emphasizing the need for a regulatory environment that promotes investment and innovation.

In a recent meeting, Reeves communicated to leaders of various regulatory bodies—including those overseeing competition, energy, water, media, aviation, and railways—that driving economic growth is the government’s “absolute top priority,” as stated by the finance ministry.

This initiative comes as the Labour government, which took office last July, faces challenges from a sluggish economy that saw only a 0.1% growth in November after a contraction in September and October.

Reeves has received backlash from the business sector following her budget announcement on October 30, which proposed significant increases in employer-paid social security contributions.

“Every regulator, regardless of sector, has a role in dismantling regulatory barriers that impede growth,” Reeves said. “I want this mission ingrained into the very essence of our regulators through a cultural shift from an excessive focus on risk to fostering growth.”

This meeting coincided with a letter from both Reeves and Prime Minister Keir Starmer urging regulators to propose five reforms aimed at supporting economic growth over the next year.

Seventeen regulators will have their proposals reviewed in the upcoming weeks, according to the finance ministry.

While regulators acknowledged their role in promoting growth, they also noted existing barriers, including other legal obligations.

Reeves further encouraged regulators to foster a cultural change that prioritizes growth rather than an excessive focus on risk.