Chancellor Rachel Reeves is set to intensify pressure on British regulators this week, demanding they eliminate rules perceived as barriers to economic growth. The move comes amidst mounting criticism from the business sector regarding the government’s regulatory approach.
CBI chair Rupert Soames expressed concerns on Monday, stating that businesses feel “bruised” by government policies. He warned that new employment regulations would impede growth and trigger job losses, potentially creating what he described as “an adventure playground for employment rights lawyers”.
The Labour manifesto’s regulatory promises span multiple sectors, from workplace reforms to football governance. Government impact assessments suggest their workers’ rights package alone could burden companies with £5bn in annual costs. Despite this, Downing Street maintains there is no contradiction between its deregulatory agenda and targeted new rules in specific sectors.
Thursday will see Reeves meet with Britain’s leading regulators, including Ofwat, Ofcom, Ofgem, the Environment Agency, and the Competition and Markets Authority (CMA). The chancellor’s allies indicate she will “haul in” these watchdogs to emphasise her commitment to removing growth obstacles.
The CMA, particularly under scrutiny, has responded by publishing an annual plan featuring the word “growth” 111 times. The watchdog has established a “growth and investment council” alongside organisations like the CBI and British Chambers of Commerce to identify growth opportunities through competition.
Labour’s strategy reflects a broader push to transform regulatory culture regarding risk assessment. Reeves argues that while necessary regulations will remain, existing rules require comprehensive review. Her November Mansion House speech emphasised that “the UK has been regulating for risk, but not regulating for growth,” signalling a significant shift in regulatory philosophy under Labour’s economic vision.
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