In her Mansion House speech in November, Rachel Reeves declared: "The UK has been regulating for risk, but not regulating for growth."
At the time, given it was an address to the City, her remark was primarily taken as focusing on the present financial watchdogs. Which indeed is what Reeves herself implied by dwelling on the aftermath of the 2008 banking crash. "It was right that successive governments made regulatory changes after the global financial crisis to ensure that regulation kept pace with the global economy of the time but it is important that we learn the lessons of the past. These changes have resulted in a system which sought to eliminate risk-taking. That has gone too far and, in places, it has had unintended consequences that we must now address."
The Chancellor did say, though: "We need economic reform to unlock the full growth potential of the British economy. Our approach to regulation is a critical part of that. As the Prime Minister has already set out, the key test for regulation is whether it will make our economy more dynamic and more competitive. So we will review the strategic guidance that we give to the [Competition and Markets Authority] and to other major regulators to underline the importance of growth."
After that there was scarcely much mention, as instead, Reeves and her colleagues appeared to become ground down in resisting domestic and international economic blows. Then last week, representatives of the British Chambers of Commerce assembled for a meeting with Lord Livermore, Financial Secretary to the Treasury. They were taken aback to be joined by Livermore’s boss. Reeves wanted to hear first-hand their woes and wishes. She’d done something similar with the Confederation of British Industry.
It was an easing of the regulatory burden they desired. They wanted a new approach, one that was less pernickety and obstructive, and would drive business and with that, growth.
This week, Reeves will "haul in" leading watchdog heads to tell them: "You’ve got to get serious about growth." Those facing her will be the Competition and Markets Authority, Ofcom, Ofgem, the Environment Agency and the Financial Conduct Authority. Next week, it will be the turn of other agencies. They will be instructed: "I want your ideas about how you’re going to stop regulating for risk and go for growth instead."
To the cynical eye, it’s reminiscent of when Rishi Sunak took charge and sent a memo round all the Whitehall departments asking for their suggestions as to how to grow the economy. He added a qualification, that they were not allowed to use anything from Liz Truss, his predecessor as prime minister. Britain, it seems, is increasingly reliant upon officials coming up with proposals rather than those who actually lead the country.
Still, Reeves has set her course. It is evident, too, in PM Keir Starmer’s announcement concerning the adoption of AI. Out will go caution and in its place will be a decision to back the new technology wholesale, including the fast-tracking of planning permissions for AI businesses.
The scale of the problem is evident, however, in a paper from the think tank Policy Exchange. The Rise of the Regulators, published six weeks ago, contains a foreword from Lord Sedwill, a former cabinet secretary. It argues that the UK’s regulatory framework is being driven by what he calls a "risk aversion ratchet", which incentivises an ever-growing burden of rules and requirements.
"The ratchet is the product of a political culture which is increasingly safetyist, a bureaucracy in which it is remarkably easy to generate new regulations and a complete lack of incentives to remove redundant or pernicious regulations from the rulebook. And it makes lessening the regulatory burden extremely hard for any government."
This is the issue. Saying one thing and putting it into practice is not always so easy, not where a long-established machine with a set way of working is concerned.
Cutting red tape
President-elect Donald Trump may find the same as he attempts to dismantle bureaucracy in the US (there is no doubt that the arrival of the free-speaking, buccaneering next president has galvanised thinking in the US and across the world).
For every rule, no matter how petty, there will be someone defending it. Policy Exchange found that Whitehall regulators have almost doubled the number of staff they employ over the past decade. Head-counts at seven of the top watchdogs have increased by 84 per cent from 2013-14. The Financial Reporting Council boosted its roll by 256 per cent between 2013-14 and 2023-24. Over the same period, the Financial Conduct Authority saw a rise of 117 per cent and Ofcom’s tally went up by 88 per cent. The Competition and Markets Authority, Food Standards Agency, Natural England and the Care Quality Commission experienced similar rises.
Policy Exchange says complying with red tape costs the UK economy £70 billion ($85.33 billion) a year, or between 3 per cent and 4 per cent of GDP. It calls for the slashing of regulations by 25 per cent. This would be accompanied by a comprehensive regulations register – the mind boggles as to its size – together with a one-in, two-out condition for the introduction of new rules.
Yes, yes and yes. But it’s hard to avoid the sense of deja vu. In 1992, Michael Heseltine as Trade Secretary was tasked with "hacking back the jungle of red tape". Which begs the question, if it was a jungle back then, what is it now?
Heseltine promised a "bonfire" of regulations. That identical word was used by David Cameron. In 2015, Cameron replaced the then one-in, two-out rule – see, it existed a decade ago – with a one-in, three-out measure, which meant for every pound of new regulatory burden introduced, government departments had to reduce burden elsewhere by at least three times that amount.
Liz Truss also seized on the same description, saying "a red tape bonfire will encourage business investment and boost growth". Not to be outdone, Starmer has said the same.
Tragedy hangs over rules
There is another word that gives lie to their bravado and highlights the practical difficulty, certainly in Britain, also involving a fire, albeit one that was terrible: Grenfell. The victims of that disaster died because insufficient building regulations were in place and the ones that were there were not properly enforced.
Possibly, that applies as well to the current wildfires in Los Angeles. The city’s mayoral authority might have diverted cash earmarked for the fire department but that is because it could, there was nothing in law that said it couldn’t. That’s speculation at this stage, admittedly, but it illustrates what Trump may discover and where this debate could head in the coming months and years.
We wish it to happen, we really do. But we live in a lawyered-up age in which one misjudged step can result in a heavy price. Hopefully, Reeves and Starmer will get somewhere, there will be tangible cuts and, with them, savings and the much sought-after growth. The ratchet will be loosened. Do not hold your breath. Remember Heseltine. When was it again? 1992.
Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Analysis
Maros Sefcovic is juggling multiple international trade agreement files, but his message was clear when he spoke to The National on Wednesday.
The EU-UAE bilateral trade deal will be finalised soon, he said. It is in everyone’s interests to do so. Both sides want to move quickly and are in alignment. He said the UAE is a very important partner for the EU. It’s full speed ahead - and with some lofty ambitions - on the road to a free trade agreement.
We also talked about US-EU tariffs. He answered that both sides need to talk more and more often, but he is prepared to defend Europe's position and said diplomacy should be a guiding principle through the current moment.
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THE BIO:
Sabri Razouk, 74
Athlete and fitness trainer
Married, father of six
Favourite exercise: Bench press
Must-eat weekly meal: Steak with beans, carrots, broccoli, crust and corn
Power drink: A glass of yoghurt
Role model: Any good man
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Mohammed bin Zayed Majlis
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
Killing of Qassem Suleimani
The five pillars of Islam
The five pillars of Islam
Results
2pm: Handicap Dh 90,000 1,800m; Winner: Majestic Thunder, Tadhg O’Shea (jockey), Satish Seemar (trainer).
2.30pm: Handicap Dh120,000 1,950m; Winner: Just A Penny, Sam Hitchcott, Doug Watson.
3pm: Handicap Dh105,000 1,600m; Winner: Native Appeal, Pat Dobbs, Doug Watson.
3.30pm: Jebel Ali Classic Conditions Dh300,000 1,400m; Winner: Thegreatcollection, Adrie de Vries, Doug Watson.
4pm: Maiden Dh75,000 1,600m; Winner: Oktalgano, Xavier Ziani, Salem bin Ghadayer.
4.30pm: Conditions Dh250,000 1,400m; Winner: Madame Ellingtina, Richard Mullen, Satish Seemar.
5pm: Maiden Dh75,000 1,600m; Winner: Mystery Land, Fabrice Veron, Helal Al Alawi.
5.30pm: Handicap Dh85,000 1,000m; Winner: Shanaghai City, Jesus Rosales, Rashed Bouresly.
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Zayed Sustainability Prize
Reading List
Practitioners of mindful eating recommend the following books to get you started:
Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung
How to Eat by Thich Nhat Hanh
The Mindful Diet by Dr Ruth Wolever
Mindful Eating by Dr Jan Bays
How to Raise a Mindful Eaterby Maryann Jacobsen
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The five pillars of Islam
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Killing of Qassem Suleimani
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
THREE
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KILLING OF QASSEM SULEIMANI
COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)
Date started: August 2021
Founder: Nour Sabri
Based: Dubai, UAE
Sector: E-commerce / Marketplace
Size: Two employees
Funding stage: Seed investment
Initial investment: $200,000
Investors: Amr Manaa (director, PwC Middle East)
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Killing of Qassem Suleimani
India cancels school-leaving examinations
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
Killing of Qassem Suleimani
If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
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Killing of Qassem Suleimani
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
MANDOOB
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Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
KILLING OF QASSEM SULEIMANI
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Killing of Qassem Suleimani
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
World Series
Game 1: Red Sox 8, Dodgers 4
Game 2: Red Sox 4, Dodgers 2
Game 3: Saturday (UAE)
* if needed
Game 4: Sunday
Game 5: Monday
Game 6: Wednesday
Game 7: Thursday
Brief scores:
Toss: Northern Warriors, elected to field first
Bengal Tigers 130-1 (10 ov)
Roy 60 not out, Rutherford 47 not out
Northern Warriors 94-7 (10 ov)
Simmons 44; Yamin 4-4
The%20specs
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MATCH INFO
Uefa Champioons League semi-final:
First leg: Liverpool 5 Roma 2
Second leg: Wednesday, May 2, Stadio Olimpico, Rome
TV: BeIN Sports, 10.45pm (UAE)
The years Ramadan fell in May
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KILLING OF QASSEM SULEIMANI
