PM demands ‘concrete proposals’ on growth from regulators

The Prime Minister has called on the UK’s regulators to do more to prioritise growth as he seeks to improve living standards by 2029.

In letters sent last week, Sir Keir Starmer, Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds said they wanted to see “concrete proposals” from regulators setting out how they could “go further” to “prioritise growth”.

They said: “Improving regulation in the UK – ensuring that it enables growth and does not unduly hold back investment – is an essential part of this Government’s growth mission.

“This is a shared endeavour in which we all have a stake, and therefore we would like your support in delivering it.”

Tough start

Regulators including the Financial Conduct Authority, Ofgem, Ofwat and the Competition and Markets Authority are among the bodies reported to have received letters from the Prime Minister.

The letters come after a tough economic start to Labour’s term in office, with figures published just before Christmas showing there was no growth between July and September.

Those figures continued a period of struggling economic growth, including a small recession at the end of 2023, although the economy did see slight growth at the start of the year.

Restoring growth forms the basis of Sir Keir’s first “mission” in Government, with Labour saying it wants to make the UK the fastest growing economy in the G7, while the Prime Minister focused on boosting living standards – in the form of household income – by the end of the Parliament.

In their letters to regulators, the ministers said they were “determined that every department and every regulator should prioritise growth, and that we in Government support you to do so”.

They added: “This collaborative effort is essential to ensure that our regulatory environment becomes more pro-growth and pro-investment.

“We respect the independence of regulators and are committed to working with you to achieve these objectives.”

Scorn

But the Conservative shadow business secretary Andrew Griffith poured scorn on the move.

He said: “It says all you need to know about Keir Starmer’s Government that he’s having to beg his own Government to create growth after Labour’s damaging Budget and job destroying Employment Bill.

“If he wants the fastest growth in the G7, he’d have more luck turning the clock back to before the general election when the UK was growing under the Conservatives.”