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The UK’s payment systems watchdog is set to be scrapped in the Government’s latest move to cut red tape as the Chancellor pledged to end the “stranglehold” on British businesses.
The Payment Systems Regulator (PSR), which looks after payment systems like faster payments and Mastercard, will be disbanded and merged within the Financial Conduct Authority (FCA).
The Government said it would make it easier for firms to deal with “one port of call”.
But it comes as the banking and payments industry is coming under scrutiny over the robustness of technology systems after a series of outages in recent weeks and months.
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.”
It follows complaints from businesses over the complexity of regulation, with payment system firms having to work with three different regulators.
The move is expected to be of greater benefit to smaller businesses, as the costs are disproportionately higher for them, according to the Government.
Prime Minister Sir 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.”
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He said cutting red tape and regulation was a priority in the Government’s Plan for Change, with further announcements due in the coming days, adding: “I’m not letting anything get in its way”.
But the PSR will not be abolished straight away, with a new law first needing to go through Parliament.
The PSR and FCA will work together in the meantime “to deliver a smooth transition of responsibilities to ensure the market remains competitive”, according to the Government.