Starmer urges watchdogs to eliminate barriers to growth

Keir Starmer, Labour leader and UK Prime Minister
Credit: Martin Suker / Shutterstock

Sir Keir Starmer has reportedly called on major UK regulators, including the Financial Conduct Authority (FCA), to remove barriers that are stifling economic growth.

Sky News reports that on Christmas Eve, the Prime Minister sent a letter to more than 10 regulators, including Ofgem, Ofwat, the FCA, and the Competition and Markets Authority, instructing them to submit a series of pro-growth proposals to Downing Street by mid-January.

The FCA responded to the letter and confirmed it would help in the new year. 

The financial watchdog also pointed to actions it has already implemented since the summer to support growth, such as reforming the information available to retail investors and introducing proposals to enhance value for money in workplace pensions.

Starmer has had a strained relationship with regulators, often appearing to view them as obstacles to progress.

In a recent speech, he stated that “the regulators, the blockers and bureaucrats” form an “alliance of naysayers”, which he believes is the reason “we can’t get things done in our country.”

In October, Starmer also pledged to “get rid” of regulations that hold back investment, though many regulators are likely to argue that such rules are essential for safety and serve an important purpose.

Since taking office in July, growth has been a central focus of Starmer’s leadership, with a particular emphasis on the financial sector as a driver of this ambition. In October’s budget, the government allocated £40m towards proof-of-concept funding and research support in science and technology.

Chancellor of the Exchequer Rachel Reeves has also been active in promoting investment, travelling internationally to secure funding and attract businesses to the UK.

However, not all of the government’s decisions have been received as pro-growth. Stakeholders in the tech industry have raised concerns about the government’s tax policies, which they argue could hinder the launch and success of new startups.

Alistair Douglas, CEO of personal finance app TotallyMoney, believes that the budget has ‘made things more difficult for the UK’s tech industry, which is already facing challenges as a result of the economy and high interest rates’.

“Over the past year, the Prime Minister has said he’ll show support – but actions speak louder than words, and we need to see a plan for growth,” Douglas added.