What could the Government’s plans to ‘cut red tape’ mean for households?

The Government plans a shake-up to “cut costly red tape that fails to deliver for local communities”.
Chancellor Rachel Reeves has summoned regulators to Downing Street, as part of moves to reduce duplication by different bodies.
While the efficiency drive is still in its early stages, and some ideas may depend on the feedback received, here is a look at how some of the changes could affect consumers’ finances:
– Shoppers may see queues at stores’ checkouts moving down faster
Contactless payment limits are being reviewed, which could mean more shoppers having a faster checkout experience as they simply “tap and go”.
The contactless card limit for a single purchase is £100, and the Financial Conduct Authority (FCA) is currently seeking views on whether removing or increasing the contactless card limit could benefit households and businesses and aid economic growth.
It has said one option put forward is to allow firms who use technology to reinforce fraud controls to set their own limits, as happens in the United States.
The regulator has also said that any changes would need to support good customer outcomes as required by the Consumer Duty rules.
Feedback to the engagement paper will close on May 9.
– Homeowners may find it easier to get a mortgage
The Government wants to see support for home ownership as part of the plans.
In May, the FCA will launch a consultation proposing early ideas to simplify rules, to make it easier to access options such as remortgaging with a new lender and reducing a mortgage term.
And then in June, the FCA will open a public discussion on the future of the mortgage market. This will involve considering what the market needs to deliver for different consumers at different stages in their lives.
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The regulator has also reminded lenders of flexibility in its existing rules, to ensure creditworthy consumers can access the affordable mortgage they need, supporting home ownership.
Mortgage lending rules were toughened following the 2008 financial crisis, to help ensure there would be no return to irresponsible lending.
– It could also be easier for property development projects to get under way
The Government has said environmental guidance, including on protecting bats, will be looked at afresh.
It said: “It should not be the case that to convert a garage or outbuilding you need to wade through hundreds of pages of guidance on bats.”
– Budding entrepreneurs could get a boost
The Government has said start-ups will be helped to secure funding to grow through the FCA issuing more notices where they are likely to approve applications from budding entrepreneurs.
– Drone deliveries may become more prevalent
The Government has said it is paving the way for package deliveries by drone, as the Civil Aviation Authority permits at least two more large drone-flying trials in the coming months.
– The role of the Financial Ombudsman Service (FOS) will be reviewed
Customers of financial services firms can ask the FOS to step in and resolve issues when they cannot come to an agreement with their firm over a complaint.
The Government has said the role of the FOS will be reviewed “to ensure that it is acting as an impartial service that provides quick and predictable resolutions to disputes – not as a quasi-regulator”.
– The Payment Systems Regulator (PSR) will be absorbed into the FCA
The PSR recently introduced mandatory reimbursement rules for banks to follow regarding victims of authorised push payment (APP) fraud – when someone is tricked into transferring money to a fraudster.
It was announced last week that the PSR will be disbanded and merged within the FCA.
David Geale, interim managing director at the PSR, told the Treasury Committee last week that no staff redundancies were expected as a result of the move.
– Initiatives around energy use
Britain’s energy regulator Ofgem will work with the Government to develop ways of rewarding flexibility – so customers can benefit from using energy at times when it is cheapest to produce, and system costs can be minimised for everyone.
A package of measures is expected to be announced in the summer.
Over the next year, Ofgem will work with other bodies to support new entrants into the market and maximise economic opportunity.