Sir Keir Starmer has thrown down the gauntlet to Britain’s top watchdogs and regulators – including those covering the energy sector – demanding they come up with ideas to boost investment to kickstart economic growth.
The prime minister, alongside chancellor Rachel Reeves and business secretary Jonathan Reynolds, has written to more than 10 regulators ordering them to submit a range of pro-growth initiatives to Downing Street by the middle of January.
The letter, sent on Christmas Eve to watchdogs covering energy (Ofgem), water (Ofwat), financial services (FCA) and competition (CMA), was unambiguous in directing regulators to prioritise growth and investment, according to one recipient. But critics accused the PM of chasing “a regulatory race to the bottom” and called for Sir Keir to pursue closer ties with Europe to boost growth instead.
Communications regulator Ofcom, the Environment Agency and healthcare regulators also received the letter, Sky News reported.
The letter comes as part of a bid by Sir Keir, who has made economic growth his number one mission, to get Britain’s flatlining economy moving.
Shortly after taking power, the PM promised a bonfire of red tape to “rip out the bureaucracy that blocks investment”. Sir Keir also promised to order regulators to prioritise growth in their decision-making, laying the groundwork for the Christmas Eve edict.
It follows a pre-Christmas blow for the PM and Ms Reeves, as official figures showed that there was no economic growth in Labour’s first three months in power.
With the economy on the verge of entering a recession, Ms Reeves said the figures were “only fuelling our fire to deliver for working people”. And she said the task facing the government was huge “after 15 years of Tory neglect”.
Critics lashed out at the PM and chancellor’s focus on de-regulation to boost growth, calling instead for the government to urgently rebuild ties with the EU.
Sir Keir has launched a reset of post-Brexit relations with Brussels since taking office, but has yet to formally agree closer trading ties.
Naomi Smith, chief executive of campaign group Best for Britain, which campaigns for a better UK-EU relationship, said: “Achieving economic growth is vital if the prime minister is to deliver on his 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 must be removed are those created by the Brexit deal which have artificially increased prices for consumers.
“The government can do both by committing to a policy of beneficial regulatory alignment with our largest market.”
The government declined to comment on the letters, but a spokesman said: “Our Plan for Change will drive economic growth right across the country, putting more money in people’s pockets.
“Regulating for growth instead of just risk is essential to that mission, ensuring that regulation does not unnecessarily hold back investment and good jobs in the UK.”
