Government cuts red tape to accelerate public sector innovation

The UK government has announced a major regulatory overhaul designed to bring cutting-edge technologies to market faster and strengthen the country’s reputation as a global innovation hub.

Through an £8.9 million funding package managed by the Regulatory Innovation Office (RIO), 16 projects across health, local government, infrastructure and energy will trial new ways of working that remove barriers to innovation. The part of the government’s Plan for Change, aimed at creating a pro-innovation regulatory environment while improving public services.

From drones to AI-driven safety tools

Examples include AI-enabled drones delivering medicines across the Scottish islands, London Fire Brigade’s smartphone app to identify fire risks in homes, and Milton Keynes Council’s pilot of pavement-cleaning robots. Each project demonstrates how smarter regulation can help public bodies adopt technologies that directly improve safety, productivity and public outcomes.

In Northumberland, AI will be used to assess flood risk in planning applications, helping developers take account of environmental impacts earlier in the process. Meanwhile, the Care Quality Commission will trial AI note-taking tools to reduce administrative load for health and care staff, and the Environment Agency will explore AI platforms to simplify the rollout of low-carbon heat networks.

Together, these projects represent a cross-sector testbed for data-driven innovation, reflecting a shift toward regulation as an enabler rather than a barrier to digital transformation.

Regulation built for innovation

The RIO, chaired by Lord Willetts and operating under the Department for Science, Innovation and Technology, was established in 2024 to modernise how the UK regulates emerging technologies. It supports regulators such as the MHRA, CQC, ICO and Environment Agency to experiment with agile approaches that keep pace with scientific advances.

In its first year, the RIO has already unlocked reforms that allowed a UK firm to win a £23 million National Grid contract for drone inspections and accelerated risk assessments for the UK’s £45 billion drone sector. Its work also includes developing rules for space-mission debris removal and synthetic biology - areas that could generate billions for the UK economy.

Science and Technology Secretary Liz Kendall said the reforms are about “making the rules fit for purpose” so new technologies can reach citizens and markets faster. She added that empowering regulators to innovate will “drive the economy forward faster, easier and safely.”

Creating a pro-innovation culture in the public sector

For digital and data leaders, the RIO’s work signals a growing maturity in how the public sector approaches innovation. Rather than waiting for policy catch-up, regulators are being encouraged to work collaboratively with industry, research hubs and local authorities to test ideas safely and transparently.

The Regulators’ Pioneer Fund, which finances RIO-backed projects, has already shown how small-scale pilots can transform regulatory practice. An independent evaluation by the National Centre for Social Research found earlier rounds helped embed innovation within organisations and strengthened cooperation between industry and government.

New partnerships will extend that collaborative model further. The RIO will work with IBM to host an AI hackathon in 2026 and with groups including the CBI, Tech UK, and the Start-Up Coalition to provide innovators with a direct route for raising regulatory challenges.

Industry figures have welcomed the approach. The CBI described the RIO as “critical to ensuring regulation enables, rather than holds back, new ideas,” while the Association of the British Pharmaceutical Industry said simplifying the regulatory landscape will help patients access new treatments more quickly.