Reeves wants to 'take out more regulators'

Chancellor Rachel Reeves wants to “take out more regulators” as she promised private equity leaders that the government will continue to dismantle and constrain oversight bodies in a bid to revive economic growth and attract investment. 

Addressing the British Private Equity & Venture Capital Association (BVCA) summit in London, Reeves made clear that her administration views the current regulatory environment as an impediment to business and investment. “I want to take out more regulators; there’s still too many,” she told the assembled delegates, echoing her earlier characterisation of regulators as a “boot on the neck” of enterprise. 

The Chancellor’s remarks, reported in The Times and The Guardian, follow a series of decisive actions: the sacking of the Competition and Markets Authority’s chair, the abolition of the payments regulator, and the imposition of strict limits on the Financial Ombudsman Service—a move long sought by banks. Yet Reeves indicated these measures are only the beginning, declining to specify which regulators may be next but confirming that reforms to environmental rules are already in motion. The Department for Environment, Food and Rural Affairs, now under new leadership, has been instructed to “facilitate growth rather than find reasons to say no to development.” 

Reeves, who faces mounting speculation over tax rises in the upcoming autumn budget, sought to reassure the business community that her government is committed to making Britain a more attractive place to do business. “We will make it easier to do business in Britain, ripping out those things that have been blocking growth and instead, backing the builders,” she said. 

The Chancellor’s pro-business stance was reinforced by her comments on the Financial Ombudsman Service: “We’re severely constraining the Financial Ombudsman, which I think is very important: they are not a regulator, they’re supposed to be a resolver of complaints but their role has grown much too much.” She also pointed to positive industry feedback following the leadership change at the Competition and Markets Authority, describing it as a “massive step-change” welcomed by the technology sector. 

Reeves was equally candid about the need for further reform within the City, particularly with the Financial Conduct Authority. However, she expressed confidence in the FCA’s chief executive, Nikhil Rathi, noting his positive response to her call for growth-oriented regulation and confirming his reappointment. 

The Chancellor’s message was clear: government alone cannot deliver economic growth. “You can only get growth if you’ve got investment, productivity improvements and people are choosing to take on workers. And that’s where your industry, private equity and venture capital comes in,” she told the BVCA summit. 

New data from the BVCA underscores the importance of her agenda, with a significant proportion of private capital investors still viewing the UK as a favourable environment for business, despite ongoing concerns about tax and regulatory complexity. Industry leaders have broadly welcomed Reeves’ determination to streamline oversight, seeing it as a critical step towards unlocking investment and supporting the UK’s fastest-growing firms.