Regulators have signed up to nearly 60 growth measures, such as making it easier to remortgage, following a meeting with Chancellor Rachel Reeves.
The government said the Action Plan was delivered after “weeks of intense negotiations” and included an agreement to simplify mortgage lending rules, such as making it easier to remortgage to a new lender and reduce mortgage terms.
It will also examine whether the Financial Ombudsman Service (FOS) acts as an impartial dispute resolution service to handle complaints against firms and works in alignment with the Financial Conduct Authority (FCA).
The FCA and Prudential Regulation Authority (PRA) have also agreed to reduce regulatory reporting requirements for firms as part of the plan.
When it comes to delivering homes, the government said it would remove complexity and red tape across environmental permitting by streamlining Nationally Significant Infrastructure Projects (NSIPs) to ease requirements for low-risk activities, meaning developers will not need consent orders.
It said businesses would “save billions” through the axing of regulators and streamlined core legal duties.
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The government also wants to encourage investment from international financial services firms by creating a bespoke ‘concierge service’ to help them become familiar with UK regulations. Additionally, help will be given to start-ups so they can secure funding to grow through the FCA issuing more notices when they are likely to approve applications from “budding entrepreneurs”.
Reeves said: “The world is changing and that’s why we must go further and faster to deliver on our Plan for Change to kick-start economic growth. Today, we are taking further action to free businesses from the shackles of regulation.
“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.”
A supportive regulatory environment
David Postings, chief executive of UK Finance, added: “We need a regulatory environment that supports investment and is internationally competitive. I’ve been delighted to see the progress already made by government and regulators, who are listening to the ideas put forward by UK Finance and industry and taking bold action.
“Today’s announcement builds on that progress, most notably reviewing how the Financial Ombudsman Service operates. It currently acts as a quasi-regulator, which was not the original intention, and addressing this issue is a key one for our sector. I look forward to continuing to work with the government to ensure financial services helps deliver growth up and down the country.”
Today, UK Finance published a growth plan for financial services, with recommendations to the government and regulators.
Debbie Crosbie, CEO of Nationwide, said: “I welcome the government’s decisive action to deliver better regulation. Clear and predictable rules will help firms focus on growth and innovation for the benefit of consumers.
“The target to reduce the administrative cost of regulation by 25% could make a meaningful difference to the regulatory burden and economic growth.”
