The Business Secretary Jonathan Reynolds has indicated the number of regulators overseeing British industry and commerce could be reduced as part of the government’s pursuit of economic growth.
Speaking as he launched a consultation on the overhaul of the Competition and Markets Authority (CMA), which regulates mergers and acquisitions, Mr Reynolds told journalists the number of bodies overseeing British business may be a barrier to economic success.
The CMA’s former chair was forced to resign last month as ministers sought to remove barriers to growth, and businesses are now invited to help reshape the agency’s priorities.
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Mr Reynolds suggested reform of state watchdogs, whose roles includes consumer protection, may not end there.
“We have to ask the question: have we got the right number of regulators?,” he said. “Day in, day out, I hear from business leaders who say to me that regulation and regulators are too cumbersome.
“They are too slow, that they’re too focused on theoretical issues with little understanding of how business and markets actually operate. And I’ve heard that message loud and clear.”
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Regulators operate across multiple sectors and from several government departments, including Ofwat overseeing the water industry and Ofcom regulating telecoms and elements of the media.
In financial services there are several overlapping regulators, established in the wake of the 2008 crash, including the Financial Conduct Authority, the Prudential Regulation Authority and the Financial Policy Committee.
Mr Reynolds did not say explicitly which bodies or responsibilities he had in mind, but did draw a direct comparison with the United States and its approach to regulation since the financial crisis.
Asked if the focus on growth could come at the expense of consumer interests, he said: “Effective regulation cannot be protecting people from risks by simply closing down or preventing whole areas of business activity.
“If you look at the divergence in financial services between the US and the UK after the financial crisis it is absolutely stark, both in terms of the average income, GDP growth, whichever way you look at it.
“So when I talk about being bold and taking a few more risks, I don’t that is risky in itself. The biggest risk is continuing as we are, because that is not going to give people the living standards, the public services they expect.”
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Speaking to journalists in central London Mr Reynolds said he would seek an exemption from US tariffs on aluminium and steel for UK exports for use in the defence industry,
“I believe we can engage with them on their agenda, and I do feel that where there are concerns about the global steel and aluminium industries, I have a very strong case that the UK is not the problem within that, and I think there’s a basis for a discussion.”
