UK to slash regulation and social spending to support economic growth: Bloomberg

Bloomberg reports that the UK government will abolish several business regulatory bodies and cut welfare spending to stimulate the country's stagnant economy.

According to Chancellor of the Exchequer Rachel Reeves, slashing business regulation will bring relief to the economy by reducing bureaucratic burdens, increasing investment, and creating new jobs.

On Monday, Reeves is to hold a meeting with representatives of the UK's eight main regulators. Officials will discuss a plan to cut spending on business regulation by a quarter. Meanwhile, according to Bloomberg, Work and Pensions Secretary Liz Kendall will present guidelines to cut welfare spending by 6 billion pounds ($7.74 billion).

However, the intentions of officials to reduce spending on social security face criticism. Thus, the issue was addressed by the Resolution Foundation think tank. Its experts are skeptical about balancing the budget at the expense of social payments, instead suggesting tax increases as a solution to the problem.