Starmer Aims to Save £45 Billion with AI Integration, Abolishes Payments Regulator

Prime Minister Keir Starmer is set to unveil a comprehensive plan to reform the British state, aiming to address what he describes as an 'era of instability'. The initiative includes significant cuts to red tape, a major overhaul of the civil service, and the integration of artificial intelligence to enhance efficiency and save up to £45 billion annually in productivity. As part of this effort, Starmer has announced the abolition of the UK's payments regulator, the Payment Systems Regulator, to reduce regulatory burdens and stimulate economic growth. The functions of the regulator will be absorbed by the Financial Conduct Authority. Additionally, Starmer plans to recruit 2,000 tech apprentices to boost the use of AI in Whitehall. In a related move, top UK financial regulators, including the Financial Conduct Authority and the Bank of England's Prudential Regulation Authority, have abandoned proposals to enforce diversity and inclusion reporting across 42,000 UK businesses. This decision follows a backlash against DEI policies, with critics arguing they add unnecessary bureaucratic burdens and could hinder economic growth. Conservative leader Kemi Badenoch and Chancellor Rachel Reeves have expressed support for reducing regulatory burdens. Starmer's speech on Thursday will also target what he calls a 'cottage industry of checkers and blockers' within the regulatory system, signaling a broader push to streamline government operations and decision-making processes. Technology Secretary Peter Kyle highlighted the potential for a £45 billion 'jackpot' through proper use of technology across the public sector.