Sir Keir Starmer has ordered Britain’s key watchdogs to remove barriers to growth in a bid to kickstart Britain’s sluggish economy.
Sky News has learnt that the prime minister wrote to more than ten regulators – including Ofgem, Ofwat, the Financial Conduct Authority and the Competition and Markets Authority – on Christmas Eve to demand they submit a range of pro-growth initiatives to Downing Street by the middle of January.
One recipient of the letter, which was also signed by Rachel Reeves, the chancellor, and Jonathan Reynolds, the business secretary, said it was unambiguous in its direction to regulators to prioritise growth and investment.
The Financial Reporting Council, Ofcom, the Environment Agency and healthcare regulators are also all understood to have been sent it.
It comes after a torrid first few months in office for the PM, who has been forced onto the back foot by a series of damaging sleaze rows and turbulent policymaking.
October’s Budget, which involved pledges to raise taxes by tens of billions of pounds, triggered a bruising backlash from the private sector, with bosses in a string of sectors warning that it will fuel inflation and cause job losses and business closures.
One regulatory source said this weekend that the letter to watchdogs and a wider drive for regulatory reform emanating from Downing Street were the brainchild of Varun Chandra, the PM’s special advisor on business and investment.
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Sir Keir’s letter is understood to have referred to a need for every government department and regulator to support growth, and called on each recipient to submit five ideas for delivering that mandate by January 16.
The letter also urged regulators to identify how the government could remove barriers to economic growth and where regulatory objectives were either conflicting or confused.
Mr Chandra is said by government insiders to have ruffled feathers in Whitehall since his appointment shortly after Labour’s massive general election victory in July.
A former managing partner at Hakluyt, the corporate intelligence firm, Mr Chandra has been “relentlessly” emphasising the urgency of transforming business sentiment to drive growth, according to one Whitehall source.
The insider added that the letter to watchdogs was expected to be the first step in a broader programme of supply-side reforms to be overseen by Downing Street during the coming months.
Most of Britain’s economic regulators already have a Growth Duty enshrined in their statute, having come into effect in March 2017 under the Deregulation Act of two years earlier.
The push for watchdogs to have greater regard for economic competitiveness has already triggered a series of flashpoints, most notably in the financial services industry, where ministers have clashed with FCA officials over a number of policy areas.
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Sir Keir has already signalled his aim of removing red tape, telling the government’s flagship International Investment Summit in the autumn: “The key test for me on regulation is of course growth.
“We’ve got to look at regulation across the piece, and where it is needlessly holding back the investment we need to take our country forward.
“Where it is stopping us building the homes, the data centres, the warehouses, grid connectors, roads, trainlines, then mark my words – we will get rid of it.”
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On Saturday, a government spokesman declined to comment on the contents of the letter to regulators but 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.”
