London, March 17 (Reuters) - British Finance Minister Rachel Reeves expressed satisfaction on Monday with the steps taken by the country's top financial regulatory bodies to drive economic growth, as part of the government's efforts to reduce bureaucracy by eliminating certain watchdog entities.
In a joint pledge with Prime Minister Keir Starmer during last year's election, Reeves promised to boost the economy; however, growth has been slower than anticipated, straining the government's financial plans.
Reeves disclosed to Reuters that the Financial Conduct Authority (FCA), responsible for overseeing London's financial sector, and the Prudential Regulation Authority (PRA), a division of the Bank of England, are heeding her call to streamline business operations.
"I've been encouraged by the progress made by both the FCA and the PRA in fostering growth," Reeves stated in an interview after meeting with top regulators earlier on Monday to advocate for further regulatory adjustments.
The British government has decided to dissolve the Payment Systems Regulator, which deals with certain financial service matters and has faced criticism from businesses subject to both PRA and FCA regulations.
Reeves commended the FCA for withdrawing proposed regulations and the PRA for deferring the adoption of the global Basel III banking rules by another year.
Today, the Treasury endorsed recommendations by the FCA and the PRA to introduce a concierge service for investors entering the UK, alter contactless payment limits, and simplify mortgage procedures.
In light of its decision to eliminate the PSR and National Health England, a body overseeing the publicly funded healthcare system, Reeves emphasized "the seriousness of our commitment." She declined to disclose the number of additional regulatory bodies that may be dissolved.
The head of Britain's competition watchdog was replaced at Reeves' behest to align with her "strategic vision," a move expedited by U.S. President Donald Trump's deregulation efforts.
Despite mixed reactions from UK employers, who are concerned about recent tax hikes and proposed worker rights expansions, Monday's regulatory developments were welcomed by the Confederation of British Industry. They stressed the need for a comprehensive approach, inclusive of finalizing the Employment Rights Bill.
Reeves assured that the government, in collaboration with businesses, is striving to strike a balanced approach towards employment rights, with probation periods for new employees serving as a vital source of reassurance for businesses.