Zarah ChoudharyRegulation will be cut back as the Prime Minister set 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.
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.
Prime Minister, Keir Starmer 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, Rachel Reeves, 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.”
The 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.
