Prime Minister Sir Keir Starmer has called on key regulators, including the FCA, to do all they can to push reforms for growth in their sectors.

According to reports on Sky News and BBC News over Christmas, Sir Keir wrote to regulators on Christmas Eve asking them to put forward proposals by mid-Jan.

The government has increasingly encouraged regulators, including the FCA, to cut red tape and introduce reforms to drive much-needed business growth.

The letter to regulators was sent by Sir Keir Starmer, Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds.

The letter called for ideas to spur business growth to revive the economy, which has stagnated in recent months.

The letter is believed to have been sent to the Financial Conduct Authority (FCA), and other regulators, including those covering healthcare and the environment.

According to Sky News, the letter urged regulators to become "more pro-growth and pro-investment" while maintaining their independence as regulators.

In a statement the FCA responded: "We look forward to replying to the Prime Minister’s letter in the New Year having already delivered significant measures since summer to support growth.

"These range from the overhaul of UK listing rules to the reform of the information retail investors receive; from changes to the remuneration regime to proposals to provide better value for money for workplace pension savers; as well as our newly launched AI lab to support innovators, to name but a few.”

The FCA has recently pointed out that it has taken a number of steps to boost growth, citing its long-running regulatory sandbox initiative and a recent competition to reward growth ideas. 

In the coming months the FCA plans to conclude reforms to secondary capital raising and launch a consultation on a new market for private company shares (PISCES). It also plans to set out its next steps on streamlining its rulebook and take forward proposals for targeted support in pensions, followed by broader proposals for retail investments.

The government says it is on a growth mission and many investors have been frustrated by excessive red tape and blocks on planning applications.

Chancellor Rachel Reeves says one of her key challenges is to “fix” the economy after 15 years of alleged neglect.