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Sir Keir Starmer has thrown down the gauntlet to BritainTop watchdogs and regulators – including those covering the energy sector – are required to come up with ideas for encourage investment to drive economic growth.
The Prime Minister, with the Chancellor Rachel Reeves and business secretary Jonathan Reynoldshe wrote to more than 10 regulators ordering them to do so submit a number of development initiatives to Downing Street by mid-January.
The letter, sent on Christmas Eve to watchdogs covering energy (Ofgem), water (Ofwat), financial services (FCA) and competition (CMA), was unequivocal about the regulator’s intention to prioritize growth and investment, according to one recipient. But critics accused the prime minister of chasing a “regulatory race to the bottom” and called on Sir Keir to pursue closer ties with Europe to boost growth instead.
Communications regulator Ofcom, the Environment Agency and health regulators have also received the letter, Sky News reports.
The letter comes as part of a bid by Sir Keir, who has made economic growth his number one mission, to jump-start Britain’s economy.
Shortly after taking power, the prime minister promised a bonfire of bureaucracy to “uproot the bureaucracy that blocks investment”. Sir Keir also promised to instruct regulators to prioritize growth in decision-making, laying the groundwork for the Christmas edict.
It followed a pre-Christmas blow to the Prime Minister and Ms Reeves as official figures showed there was no economic growth in the first three months of Labor government.
With the economy teetering on the brink of recession, Ms Reeves said the figures “just fuel our fire to deliver for working people”. And she said the task before the government was huge “after 15 years of Tory neglect”.
Critics have slammed the prime minister and chancellor’s focus on deregulation to boost growth, calling on the government to urgently restore ties with the EU.
Sir Keir has launched a post-Brexit reset of relations with Brussels since taking office, but has yet to formally agree closer trade ties.
Naomi Smith, chief executive of campaign group Best for Britain, which campaigns for better relations between the UK and the EU, said: “Achieving economic growth is vital if the Prime Minister is to deliver on her promises to the country, but the answer is not a regulatory race to the bottom.
“Businesses need regulatory certainty to invest and the real barriers to growth that need to be removed are those created by the Brexit deal which artificially raised prices for consumers.
“The Government can do both by committing to a policy of beneficial regulatory alignment with our largest market.”
However, the deputy leader of Reform UK said Sir Keir was “getting desperate” six months after the general election and the letter was a “desperate ploy”.
Mr. Tice said The Independent: “His budget backfired, pushing Britain to the brink of recession. This is nothing more than a desperate ploy to save his own skin without doing the right thing – which is to reverse his damaging budget.
“The UK reforms are clear, we would save tens of billions by cutting the jobs destroying Net Zero that is causing the cost of living crisis, cutting foreign aid, scrapping the civil service so we could encourage work and small businesses with lower taxes to restart the economy.”
The government declined to comment on the letters, but a spokesman said: “Our plan for change will drive economic growth across the country, putting more money in people’s pockets.
“Regulating for growth rather than just risk is essential to that mission, ensuring that regulation does not unnecessarily prevent investment and good jobs in the UK.”