Prime Minister Sir Keir Starmer has instructed his ministers to take greater responsibility for decision-making rather than relying on regulators to deliver key government priorities. During a cabinet meeting on Tuesday, Starmer emphasized the need for a more “active and agile state,” urging ministers to accelerate reforms and review regulations that do not align with the government’s plans. He is expected to elaborate on these changes in a speech on Thursday, which will outline an overhaul of how the government operates.
While Starmer did not specify which decisions had been outsourced, he appeared to reference non-departmental public bodies, or “quangos,” such as the Environment Agency and Ofcom, which operate independently of direct government control. A Downing Street spokesperson denied plans for a “bonfire of the quangos” but stressed the need for regulators to focus more on economic growth.
In line with this shift, the government announced the scrapping of the Payment Systems Regulator, which oversees financial transactions, with its functions to be merged into the Financial Conduct Authority. This move reflects the Labour government’s broader efforts to assert greater control over regulators and public bodies to drive economic growth and deliver its agenda.
Since taking office, the government has established new quangos, such as Skills England and an independent football regulator, but has also sought to tighten its grip on existing bodies. For example, Chancellor Rachel Reeves has urged regulators to prioritize growth over risk aversion, while Justice Secretary Shabana Mahmood has clashed with the Sentencing Council over its guidance on considering offenders’ backgrounds during sentencing.
Starmer is also pushing for reforms within the Civil Service, including reducing staffing levels, introducing performance-related pay, and dismissing underperforming civil servants. However, these plans have faced criticism from unions, who accuse the government of treating the Civil Service as a “political punchbag” and recycling failed ideas.
The prime minister’s focus on streamlining decision-making and enhancing ministerial accountability signals a significant shift in how the Labour government intends to achieve its goals, particularly in revitalizing the economy and reforming public services.
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