Payment systems watchdog to be axed under move to cut ‘stranglehold’ on firms
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it’s investigating the financials of Elon Musk’s pro-Trump PAC or producing our latest documentary, ‘The A Word’, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.
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.”
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
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.
