Regulation will be cut back as the Prime Minister sets out his
latest steps to drive economic growth that puts more money in
working people's pockets.
The Payment Systems Regulator (PSR) will be abolished as the
latest step in reducing the burdens on business.
The Government will set out further steps to reduce red tape in
the coming days.
A strong economy is at the heart of the Government's plan to
deliver security and renewal through the Plan for Change.
The PSR – which looks after payment systems like Faster Payments
and Mastercard – will mainly be consolidated into the Financial
Conduct Authority, making it easier for firms to deal with one
port of call.
It follows complaints from businesses that the regulatory
environment was too complex – with payment system firms having to
engage with three different regulators, costing them time, money
and resource.
This has a greater impact on smaller businesses that are trying
to scale and grow – as the costs are disproportionately higher
for them.
The Prime Minister wants to make regulation work for the UK – and
this is the latest step in his drive to create an environment
that will kickstart economic growth.
It is only by creating growth that people will see a genuine
increase in their living standards – with higher wages and more
money in their pocket at the end of the month.
Prime Minister,
said:
“For too long, the previous Government hid behind regulators –
deferring decisions and allowing regulations to bloat and block
meaningful growth in this country.
“And it has been working people who pay the price of this
stagnation.
“This is the latest step in our efforts to kickstart economic
growth, which is the only way we can fundamentally drive-up
living standards and get more money in people's
pockets.
“That's why it is the priority in the Plan for Change, and it's
why I'm not letting anything get in its way.”
Chancellor, , said:
“The regulatory system has become burdensome to the point of
choking off innovation, investment and growth. We will free
businesses from that stranglehold, delivering on our Plan for
Change to kickstart economic growth and put more money into
working people's pockets.”
This builds on the Government's deregulatory agenda, which has
already:
- Lifted the onshore
wind ban at the stroke of a pen
- Introduced the
Planning and Infrastructure Bill
- Launched the root and
branch review of the water sector
- Set financial
services regulators on a growth agenda
- Set up a review of
all environmental regulation
Today's announcement does not result in any immediate changes to
the Payment Systems Regulator's remit or ongoing programme of
work. The regulator will continue to have access to its statutory
powers until legislation is passed by Parliament to enact these
changes.
In the interim period, the Payment Systems Regulator and the
Financial Conduct Authority will work closely to deliver a smooth
transition of responsibilities to ensure the market remains
competitive.
The entire regulatory landscape will continue to be reviewed and
finessed as part of a wider Government effort to kickstart
economic growth and make regulators work for the country, rather
than block progress.
This is the latest in a line of work to make regulators work for
the country. It follows:
- A speech from the
Prime Minister at the International Investment Summit where he
called on the regulatory regime to fit the modern age
- A letter from the
Prime Minister, the Chancellor and the Business Secretary –
calling on regulators to come up with at least five reforms each
that will boost economic growth
- The Chancellor
hauling in regulators in January to have these proposals
scrutinised.
