London, December 28, 2024 – The Europe Today: Prime Minister Sir Keir Starmer has instructed Britain’s key regulators to prioritize economic growth by removing barriers that hinder progress, as part of an urgent plan to revitalize the nation’s sluggish economy.
In a letter sent to over ten regulatory bodies, including Ofgem, Ofwat, the Financial Conduct Authority (FCA), and the Competition and Markets Authority (CMA), Sir Keir outlined a directive to propose pro-growth initiatives by mid-January. The letter, co-signed by Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds, emphasized the need for regulators to align their objectives with the government’s growth agenda.
The directive also reached other regulatory bodies, such as Ofcom, the Environment Agency, and healthcare regulators. Recipients have been tasked with submitting five actionable ideas to Downing Street by January 16, aimed at fostering growth and addressing conflicting or unclear regulatory objectives.
The initiative comes during a challenging start to Sir Keir’s premiership, marred by controversies and backlash over October’s tax-raising budget, which private sector leaders criticized for its potential to exacerbate inflation and threaten jobs and businesses.
This regulatory reform effort, spearheaded by Varun Chandra, the Prime Minister’s special adviser on business and investment, reflects a broader strategy to reshape business sentiment and drive economic competitiveness. Chandra, formerly of strategic advisory firm Hakluyt, has been a central figure in advocating for supply-side reforms and urging swift action on economic growth.
While many of the UK’s regulators already have a Growth Duty under the Deregulation Act 2015, this new initiative seeks to further integrate economic competitiveness into regulatory frameworks, particularly in areas like financial services, where policy disagreements have sparked tensions between ministers and FCA officials.
Downing Street’s renewed focus on regulatory reform marks the beginning of a larger agenda aimed at addressing economic stagnation and ensuring sustainable growth in the coming months.
