Reeves cutting red tape for businesses signals a shift toward modernising compliance and reducing bureaucracy
As the UK simplifies regulations, businesses must modernise how they handle compliance, and that starts with corporate digital identity.
Rachel Reeves announced at a regional investment summit in Birmingham plans to scrap needless form-filling, cutting red tape for businesses. This latest government initiative to reduce regulatory burdens has sparked widespread uncertainty, starting discussions on how companies can adapt efficiently and reduce administrative burden without increasing risks.
According to research from Umazi, a leading voice in digital corporate identity and compliance technology, 44% of UK businesses see verification processes as highly manual and time-consuming, with 40% of SMEs submitting eight or more separate verification documents when seeking finance.
To succeed, businesses cannot cut corners. They should leverage digital corporate identity and automated compliance processes to adhere to regulations.
Cindy van Niekerk, CEO of Umazi, said, “With the UK government planning to ease regulatory burdens, AI- and Web3-powered business identity wallets will help companies onboard faster, reduce costs, and future-proof compliance. The proposed regulatory reform from the government is not just about cutting red tape but also presents an opportunity for businesses to rethink compliance.
“Businesses that integrate forward-looking strategies now will be better positioned to benefit from reduced bureaucracy and future reform. They now face both an opportunity and a challenge to adapt quickly or risk falling behind. AI- and Web3-enabled digital business identity platforms do offer a solution. Reusable business identity wallets enable firms to streamline onboarding, reduce verification costs and speed compliance processes, helping them seize the benefits of regulatory reform while staying fully compliant.”
In the eyes of many, regulatory reform will only be successful if UK businesses embrace digital compliance strategies and leave outdated processes behind. Digital corporate identities allow for secure, reusable verification across multiple partners and jurisdictions. With 70% of businesses concerned about data and identity theft, the case is clear that modern verification isn’t simply a nice-to-have but a commercial imperative.
“However, regulatory reform is not just about cutting down on paperwork; it is about how compliance is operating in a digital world,” added van Niekerk. “Digital identity wallets, monitoring, and auditable processes are not simply tech innovations, but vital tools contributing to making reform meaningful and sustainable.
“AI and permissioned blockchain are providing transparency, auditability, and risk mitigation, supporting both regulators and businesses and early adopters of digital identity have a greater chance of cross-border expansion.
“Rachel Reeves’ proposed move to cut business red tape demonstrates that regulatory reform is needed, but businesses are still facing international compliance challenges. This would also help the 30% of businesses that reported a lack of available funding for their businesses. Despite spending multiple hours submitting many forms of verification documents, 22% of those that had applied for finance support had their applications rejected or were asked to provide additional information. Of these rejections, 50% were due to a lack of track record or insufficient business history. Digital corporate identity wallets have the potential to transform compliance from an expense centre to a growth enabler.
“Digital business identity wallets transform compliance from a cost centre into a catalyst for growth. Emerging markets present opportunities for expansion but bring compliance risks. Businesses that leverage technology to stay compliant across multiple jurisdictions will thrive as they enter this new era of compliance”, van Niekerk concluded.