Sir Keir Starmer has instructed Britain’s key regulatory bodies to eliminate obstacles to growth in an effort to jumpstart the country’s slow economy.
Sky News has learned that the prime minister sent a letter to over ten regulators – including Ofgem, Ofwat, the Financial Conduct Authority, and the Competition and Markets Authority – on Christmas Eve, asking them to present a variety of pro-growth proposals to Downing Street by mid-January.
One recipient of the letter, also signed by Rachel Reeves, the chancellor, and Jonathan Reynolds, the business secretary, described it as clear in its instruction to prioritize growth and investment.
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Ofcom, the Environment Agency, and healthcare regulators are also said to have received the letter.
This initiative comes after a difficult start to the PM’s term, with numerous scandals and turbulent policymaking putting him in a defensive position.
The budget announced in October, which included plans to increase taxes by billions of pounds, faced criticism from the private sector, with industry leaders warning of inflation, job losses, and business closures.
A regulatory source revealed that the letter to regulators and the broader push for regulatory reform from Downing Street were driven by Varun Chandra, the PM’s special adviser on business and investment.
Sir Keir’s letter highlighted the importance of every government department and regulator supporting growth, and requested each recipient to present five ideas for achieving that goal by January 16.
The letter urged regulators to identify barriers to economic growth and address conflicting or unclear regulatory objectives.
Government insiders stated that Mr. Chandra has been assertively emphasizing the need to boost business sentiment to drive growth since his appointment after Labour’s election victory in July.
The letter to regulators is just the first step in a broader program of supply-side reforms to be led by Downing Street in the coming months.
Most of Britain’s economic regulators already have a Growth Duty outlined in their statute, introduced in 2017 under the Deregulation Act of two years prior.
The focus on economic competitiveness has led to disputes in the financial services sector, where ministers and FCA officials have clashed on various policies.
Sir Keir has indicated his intention to reduce red tape, stating at a government summit in the autumn: “The key test for me on regulation is, of course, growth.
“We need to review regulation overall, removing any barriers that hinder the investment needed to progress our country.
“If it’s preventing us from constructing homes, data centers, warehouses, grid connectors, roads, and train lines, we will eliminate it.”
On Saturday, a government spokesperson declined to discuss the specifics of the letter to regulators but stated: “Our Plan for Change will promote economic growth across the country, benefiting the populace.
“Regulating for growth, rather than just risk, is crucial to this mission, ensuring that regulation doesn’t unnecessarily impede investment and job creation in the UK.”