Rachel Reeves "slashes red tape" in £6 billion business blitz: "It's a plaster on a much deeper wound"
FINANCIAL experts have warned that Chancellor Rachel Reeves' announcement that she is slashing red tape in a £6 billion business blitz is just a "plaster on a much deeper wound".
Reeves will say she will make the savings by the end of the Parliament and drive economic growth, it has been announced.
Over £10 billion of private sector investment is also set to be committed to regions across the UK alongside public investment in onshore and offshore wind projects.
Financial experts warned that more needs to be done before her Autumn Budget next month.
Eamonn Prendergast, Chartered Financial Adviser at Bromley-based Palantir Financial Planning Ltd, said the savings are “marginal”.
He added: "A £6 billion red-tape cut sounds bold but it won’t fix Britain’s growth problem. Cutting unnecessary admin is welcome, but it’s only a small plaster on a much deeper wound. The UK’s productivity challenge stems from weak investment, inconsistent policy and high taxation – not just too many forms.
"A £6 billion saving might sound impressive, but against a £2.7 trillion economy it’s marginal. Businesses need long-term certainty, simpler taxes, faster planning and consistent energy policy if they’re to invest and grow.
"The £10 billion in new private-sector pledges is encouraging, but Britain’s growth problem isn’t lack of capital, it’s lack of confidence. Until businesses believe the rules of the game won’t change with every Budget, we’ll keep tinkering at the edges rather than driving real recovery."
Scott Gallacher, Director at Leicester-based Rowley Turton, said there are many “outdated” regulations.
He continued: "Slashing red tape and delivering efficiency savings is the standard promise of every political party, regardless of colour – but it’s rarely delivered. Much of what’s called ‘red tape’ actually exists for public safety, and I suspect ministers often find the Sir Humphreys of Whitehall blocking reforms on what could be unnecessary red tape for fear of future scandals that those same rules were designed to prevent.
"One area that genuinely could be reviewed, yet is always missed, is the outdated regulations. These were introduced in the 1990s over concerns that office workers staring at computer monitors for long periods might damage their eyesight – a fear that was, as far as I know, completely unfounded.
“Today, virtually everyone uses screens – laptops, tablets, or phones – throughout their day, both at work and at home. The idea of paid eye tests for any employees who look at screens as part of their work is now entirely redundant and yet another unnecessary burden on business.”
Colette Mason, Author & AI Solution Architect at London-based Clever Clogs AI, said red tape-cutting is desperately needed.
She added: "The government that buried HS2 in compliance paperwork is now claiming they're cutting red tape? That's like an arsonist taking credit for calling the fire brigade. British businesses aren't drowning in ‘pointless admin’ - they're drowning in government-mandated process theatre that was deliberately designed into the system.
"You can't proudly say you're ‘streamlining’ something you consciously made into a monster by your own hand. HS2 spent more on consultations than some countries spend building entire railways. Then we wonder why productivity is stagnant?
“We've regulated ourselves into paralysis. £6 billion in savings sounds impressive until you realise it's just removing speed bumps they installed. Meanwhile, businesses waste hours proving compliance rather than being productive. British business needs government to stop consciously slowing everything down.”
Pete Mugleston, Mortgage Advisor & Managing Director at Derby-based onlinemortgageadvisor.co.uk, said the government should be focusing on its own finances before cutting red tape.
He continued: “Plans to reduce bureaucracy will be welcomed by UK businesses, but the elephant in the room is the government’s own finances. Borrowing in September hit the highest level in five years, and debt interest costs are spiralling. Before tackling business admin, the Chancellor should focus on getting her own house in order and restoring fiscal credibility.”
Ken James, Director at London-based Contractor Mortgage Services, agreed, adding: “On paper, it sounds like a long-overdue boost to business confidence and a move to make the UK a more attractive place to invest and grow. The headlines write themselves: ‘Labour backs British business’. But is this really the turning point Labour wants it to be?
"We’ve been here before with big announcements, bigger numbers, but it always seems to fail with little to no structural change. The economy’s productivity problem, record debt, and weak business confidence aren’t fixed by cutting a few forms and trimming regulation.
"These are deep-rooted issues tied to tax, skills, planning, and innovation and without bold, long-term reform, this feels more like damage control than a new dawn. Will we see Reeves and Britain crack under the pressure of a tough Budget ahead?”
