Reeves meeting regulators in drive to cut red tape

Measures to speed up economic growth are set to be discussed in a meeting of industry regulators with the chancellor on Monday.

Rachel Reeves is expected to outline more plans for cutting the cost of regulation, including environmental measures, as well as scrapping some bodies in their entirety.

It comes as the Organisation for Economic Co-operation and Development (OECD) cut its UK growth forecast for 2025 and 2026 as it downgraded prospects for the global economy because of worries over the mounting trade war.

The government has made boosting growth its main priority, but the Conservatives said Labour's taxes were harming growth and called on Reeves to set out a "real plan".

In its latest forecast, the OECD cut its predictions for UK growth to 1.4% in 2025, from its previous forecast of 1.7%, and to 1.2% in 2026, down from 1.3%.

However, the forecast is more optimistic than the Bank of England, which earlier this month cut its UK growth forecast for 2025 to 0.75%.

Economic forecasts are not always accurate but predictions from the OECD are looked at closely.

The OECD said that for the world economy, growth would slow from 3.2% in 2024 to 3.1% in 2025, largely as a result of the trade tensions.

This is largely linked to trade tensions sparked by US President Donald Trump's introduction of tariffs on imports into the US.

Reeves said: "This report shows the world is changing, and increased global headwinds such as trade uncertainty are being felt across the board."

The UK economy shrank unexpectedly in January, contracting by 0.1%, which was weaker than forecast, driven mainly by a decline in the manufacturing sector.

Ahead of Monday's meeting with regulators, Reeves said. "By cutting red tape and creating a more effective system, we will boost investment, create jobs and put more money into working people's pockets."

The meeting follows the government abolishing NHS England, the world's biggest quango - short for a quasi-autonomous non-governmental organisation - last week.

Eight regulators are meeting the chancellor on Monday.

These will include Natural England - the government's adviser for the natural environment in England - and the Environment Agency, which is responsible for regulating land and water pollution as well as overseeing conservation and ecology.

Changes expected to be announced include streamlining the environmental regulatory process for major projects including Lower Thames Crossing (subject to planning approval) and future ones such as a Heathrow expansion.

Environmental guidance, including hundreds of pages on protection of bats, is expected to be reviewed, while environmental permits for some low-risk and temporary projects will be removed.

This plan comes alongside 60 measures agreed upon by watchdogs "following weeks of intense negotiations" that are designed to make it easier to do business in the UK.

Those measures include:

• Fast-tracking new medicines through a pilot to provide parallel authorisations from healthcare regulators

• Reviewing the £100 cap on individual contactless payments

• Simplifying mortgage lending rules to make it easier to re-mortgage with a new lender and reduce mortgage terms

• Setting up a 'concierge service' to help international financial services firms navigate regulations

• Civil Aviation Authority permitting at least two more large drone-flying trials for deliveries in the coming months - which the government said has already cut travel times for blood samples between hospitals from 30 minutes down to two minutes

In abolishing NHS England last week, politicians said they wanted to "scrap duplication and give more power and tools to local leaders" so they can better deliver for their communities.

Health Secretary Wes Streeting said the move was the "beginning, not the end" and he wants to slim down bloated bureaucracy, meaning more quangos could go.

The government has already announced plans to fold another quango, the Payments Systems Regulator, into the Financial Conduct Authority.

On Monday, Reeves will announce the abolition of a third - the Regulator for Community Interest Companies, which will be folded into Companies House.

The chancellor has promised to significantly cut the number of regulators by the end of the Parliament.

Shadow chancellor Mel Stride said that Labour's taxes and trade union red tape were preventing businesses from focusing on growth.

"Rachel Reeves has nine days until her emergency budget, where the Conservatives are calling on her to set out a real plan for growth," Stride said.

Mark Allan, chief executive of commercial property firm Landsec, said: "We have been through a period over many years of having regulation laid on top of existing regulation."

While moves by the government were "very positive", he added that "we're starting from quite a low base, so to me this is more of a three-year project than a three-month project before we start to see that coming through."