REGULATORS RESPOND TO CHANCELLOR CUTTING RED TAPE- Chancellor abolishes the Payment Systems Regulator
Chancellor Rachel Reeves said she was pleased with moves to boost economic growth taken by two of the country’s top financial regulatory bodies as the government moves to cut red tape, including by axing some watchdogs.
Reeves and Prime Minister Keir Starmer promised voters in last year’s election that they would speed up the economy, but growth has remained stubbornly slow since then, putting pressure on the government’s spending plans.
The Financial Conduct Authority, which oversees the City of London’s financial hub, and the Prudential Regulation Authority, part of the Bank of England, were responding to the Chancellors’ call on watchdogs to make it easier to do business.
Britain’s government said last week it would abolish the Payment Systems Regulator, which oversees some financial services issues and was the subject of complaints from businesses who must also follow PRA and FCA rules.
Reeves praised the FCA for dropping proposals for so-called name-and-shame rules and the PRA for postponing the implementation of the global Basel III rules on banks by a further year.
On Monday, the Treasury backed recommendations from the FCA and the PRA on setting up a concierge service for investors coming to the UK, changes to the limits on contactless payments and making it easier for people to get a mortgage.
Many UK employers have said the government’s growth goal has been threatened not only by a tax increase on them announced at Reeves’ first budget in October but also be plans to offer workers more rights.
