CMA handed ‘strategic steer’ as government pushes pro-growth agenda
The UK’s competition watchdog has been handed a “strategic steer” from Downing Street as the government pushes regulators to adopt its pro-growth agenda.
The strategic steer, which is issued to regulators each parliament, sets out the government’s priorities for regulators and how they engage with the private sector.
According to the Treasury, the steer “resets the competition watchdog’s priorities, with a renewed focus on prioritising growth and investment.”
The document issued to the Competition and Markets Authority (CMA) mentions ‘growth’ at least 17 times in signs the Treasury is keen for the regulator to avoid taking any steps that could be perceived to harm the economy.
The CMA has been told to “take particular care to collaborate with all interested parties to ensure growth and innovation benefits are prioritised, including through supporting the government in delivery of the AI opportunities action plan.”
The regulator has also been told to act “as swiftly as possible” when probing competition concerns, in a not to investor frustration over the length of time taken in some of its recent investigations.
In January the government ousted CMA chair Marcus Bokkerink, citing a “different approach” on economic growth, an intervention designed to send a signal over the seriousness of its agenda.
‘Fundamental to our growth mission’
The government is likely to keep a keen eye on how the CMA deals with new powers it has been handed under the Digital Markets Competition and Consumers Act (DMCCA), an act designed to regulate technology businesses, as Downing Street seeks to spur growth in Britain’s tech sector.
Business Secretary Jonathan Reynolds said: “This government believes in promoting and protecting competition – that is fundamental to our growth mission and Britain’s modern Industrial Strategy.
“Our economic regulators are crucial to creating the conditions for increased growth and investment.”
Chancellor Rachel Reeves added: “Competitive markets are more important than ever for attracting investment into the UK and driving economic growth.”
The CMA is currently investigating the proposed £3.7bn takeover of Direct Line by insurance giant Aviva, in what could be seen as a key test case on whether it pursues a detailed probe or waves through the deal at speed to comply with the government’s growth agenda.