The UK Prime Minister, Sir Keir Starmer, has contacted the country’s main regulators to ask for suggestions to improve economic growth. The chancellor and business secretary joined in sending letters to watchdogs such as energy regulator Ofgem and water regulator Ofwat. The letters were sent prior to Christmas asking the regulators to submit their proposals by mid-January. The officials also contacted healthcare regulators and the Financial Conduct Authority (FCA).
The officials’ letter said they believed collaboration to be essential to fostering a “more pro-growth and pro-investment” regulatory environment whilst respecting independence. The regulators are expected to provide ideas on ways to improve regulation so that it enables growth and doesn’t hold back investment, which they will submit by the deadline in the letter. The FCA said it would reply to the letter in the New Year, noting that it had already delivered measures since the summer to support growth.
The request for growth-boosting regulatory reform comes following last week’s revelation that the UK economy had flatlined between July and September. Sir Keir and his team have vowed to use all possible governmental levers to create economic growth after a period of what they see as neglect. Shadow business secretary Andrew Griffith said the Prime Minister’s attempt to secure growth demonstrated that he has to “beg his own government” to aid the national economy after Labour’s damaging Budget. Conversely, Conservatives MPs highlighted the UK’s growth record under the Conservatives, claiming that “growth has tanked on Labour’s watch”.
Various major policy announcements, from reforms to the planning system intended to boost house-building and encouraging more “sensible risk-taking” in financial services companies, indicate that economic growth is a top priority. Shadow chancellor Mel Stride has warned that the challenges of addressing neglected aspects of the economy are huge, and that growth must be re-established after a period of Labour’s “neglect.” Sir Keir has similarly cautioned that it will take a substantial amount of time before the public feels the effect of the changes that they have initiated.
The letter demonstrates that the Starmer government is willing to put significant resources behind its vision of achieving the highest sustained economic growth in the G7. The Prime Minister and his cabinet will be hoping that the proposals they receive help to supercharge the UK’s economic performance in the coming years
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