Starmer tells ministers to avoid outsourcing decisions

Prime Minister Sir Keir Starmer has told his ministers they should take more responsibility for decisions rather than "outsourcing" them to regulators.

Sir Keir suggested to a cabinet meeting on Tuesday he wanted ministers to take a more active role in delivering the government's priorities.

He said the Labour government "must go further and faster to reform the state", including reviewing regulations with no role its plans.

The prime minister spoke to his top team ahead of a speech on Thursday, when he is expected to announce an overhaul of how the government works.

In the meeting, Sir Keir did not give examples of decisions made by regulators instead of ministers.

But he appeared to be referring to non-departmental public bodies, which are organisations funded by taxpayers but not controlled directly by central government.

These bodies - also known as Quasi-Autonomous Non-Governmental Organisations, or quangos - can deliver public services, give advice or set rules for industries.

Some - such as the Environment Agency, or the broadcasting regulator Ofcom - have powers to make decisions without ministerial input.

When asked whether the government was planning a "bonfire of the quangos", a Downing Street spokesperson said the prime minister wanted to see a more "active and agile state".

"The state has become larger, but it hasn't become more effective," the spokesperson said.

The spokesperson said regulators had "not been focused enough on growth" and that would be a theme of the prime minister's speech on Thursday.

Hours after the cabinet meeting, the government announced it was scraping the Payment Systems Regulator, which oversees financial transactions such as those through cash machines or contactless payments.

The government said legislation would be introduced to make the change and that the regulator would be gradually consolidated with the Financial Conduct Authority.

The Labour government has set up a number of quangos itself since last year's general election. For example, it is creating Skills England and has committed to an independent football regulator.

But ministers have been attempting to assert more control over regulators and other parts of the state to achieve the government's goals, above all boosting the country's sluggish economy.

In a meeting with regulators in January, Chancellor Rachel Reeves told them they had "a part to play by tearing down the regulatory barriers that hold back growth".

"I want to see this mission woven into the very fabric of our regulators through a cultural shift from excessively focusing on risk to helping drive growth," Reeves said.

Meanwhile, Justice Secretary Shabana Mahmood is embroiled in a row with the Sentencing Council, which advises judges on prison terms and community punishments.

Last week, she wrote to the Sentencing Council urging it to rethink guidance telling judges to consider the background of offenders, such as ethnicity, before deciding on a punishment.

The Labour government has taken an active role in reforming the NHS as well, with sources suggesting ministers want more control to push ahead with changes, including shifting the focus from hospitals to community care.

The prime minister is also seeking to reform the Civil Service.

On Monday, Sir Keir wrote to civil servants to promise reforms that would unshackle them from bureaucracy and stop their talent being "constrained".

The prime minister wants to reduce staffing levels, introduce performance-related pay and sack civil servants who do not meet their standards.

He is facing opposition from unions, who over the weekend accused the government of "the retreading of failed ideas and narratives" and risked "treating the Civil Service as a political punchbag".