In a meeting hosted by the Chancellor of the Exchequer and
Secretary of State for Business and Trade, chief executives at
watchdogs covering sectors including railways, water, energy and
aviation were told that economic growth is the absolute top
priority for the government, as part of the Plan for Change,
putting more money in people's pockets.
The meeting was the first in a series following a joint letter
from the Prime Minister, Chancellor and Secretary of State for
Business and Trade in December, in which the government asked the
regulators to each propose five reforms to support growth in the
coming year. Over the coming weeks, 17 regulators will be
called in to have their proposals scrutinised as the government
leaves no stone unturned to deliver
growth.
At the meeting today, the Chancellor told the regulators that
they would have a key role to play in delivering growth by
helping to create a regulatory environment that unlocks
innovation and investment, supports businesses to thrive and
allows much needed infrastructure to be built.
The regulators agreed with the Chancellor that they have a role
to play in driving growth but highlighted that there are some
barriers, including the need to balance growth with their other
legal responsibilities. The Chancellor noted that the regulators'
responsibilities had accumulated over time and said she was open
to hearing about where this was preventing them from taking
clear, consistent and balanced actions to drive growth.
She emphasised the importance of leadership to deliver a mindset
shift on regulation, calling on each of the CEOs in the room to
institute cultural change based on helping to deliver growth
instead of excessively focusing on risk.
The Chancellor also promised that the government would work
with them to develop and deliver important reforms by playing its
part, including by making time for legislation where it is needed
or using the upcoming Spending Review, and noted the Prime
Minister's promise to rip up regulation that blocks investment to
make the regulatory regime fit for the modern
age.
The Chancellor was clear that while some of the proposals already
put forward were promising, she wanted to see greater ambition
and urgency to drive economic growth. She emphasised that fresh
ideas were needed and noted that the Government will also ask
industry to come forward with their own ideas to deliver a more
growth supportive regulatory environment.
She highlighted some specific and promising ideas she had heard
from the regulators today. These included: driving greater
responsiveness to business demands, particularly on planning and
license applications; grant funding administered by Ofwat to
drive innovation in the water sector supply chain; energy tariff
reform; increasing access to rail operator efficiency data and
innovative drone solutions which would unlock growth in the
public sector.
The regulators agreed to continue working with the government on
their proposals reform ahead of publishing an action plan in
Spring, and welcomed today's strategic discussion.
The Chancellor finished the meeting by reiterating that
leadership matters, noting that every regulator would have to
play their part to improve living standards across the country.
Following the meeting, Chancellor of the Exchequer,
said:
There's no substitute for growth. It's the only way to create
more jobs and put more money in people's pockets, which is why
it's at the heart of our Plan for
Change.
Every regulator, no matter what sector, has a part to play by
tearing down the regulatory barriers that hold back growth. I
want to see this mission woven into the very fabric of our
regulators through a cultural shift from excessively focusing on
risk to helping drive growth.
