The Payment Systems Regulator (PSR) will be abolished by the government as it looks to ‘slash the red tape’ on business.
The PSR – which looks after payment systems like Faster Payments and Mastercard – will mainly be consolidated into the Financial Conduct Authority.
It follows complaints from businesses that the regulatory environment was too complex – with payment system firms having to engage with three different regulators, costing them time, money and resource.
This has a greater impact on smaller businesses that are trying to scale and grow, according to the government, as the costs are disproportionately higher for them.
The government said it will set out further steps to reduce red tape in the coming days.
“For too long, the previous government hid behind regulators – deferring decisions and allowing regulations to bloat and block meaningful growth in this country,” said Prime Minister Keir Starmer.
“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.
“That’s why it is the priority in the Plan for Change, and it’s why I’m not letting anything get in its way.”
Chancellor Rachel Reeves added: “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 and put more money into working people’s pockets.”
There will not be any immediate changes to the PSR’s remit or ongoing programme of work. The regulator will continue to have access to its statutory powers until legislation is passed by Parliament to enact these changes.