Britain’s competition regulator will adopt a more growth-oriented approach under its new chairman, following pressure from the Labour government.

Business Secretary Jonathan Reynolds last week sacked Competition and Markets Authority (CMA) chairman Marcus Bokkerink and installed former Amazon executive Doug Gurr.

The Labour Growth Group, which comprises more than 100 MPs committed to tearing down the barriers to growth, has now written to Mr Gurr urging him to work with CEO Sarah Cardell to review its approach to regulation.

Citing the increasing cost of regulation and the rise in the number of businesses in distress, the MPs say the CMA should “set an example to other regulators”.

Mr Gurr welcomed the letter, saying it is “great to have this sort of clear-sighted input and support from parliamentarians”.

He added: “They’re right that the CMA can play a leading role in the ambitions for growth and prosperity laid out in the letter. Sarah and I are already working closely on how we take forward thinking to achieve that.”

It is understood that the Labour group wants other bodies such as the Environment Agency and the Planning Inspectorate to follow the same pro-growth mindset.

Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves initiated calls for the CMA to shift its focus from risk to growth.

Critics have said that urging the regulator to stimulate growth is expecting it to go beyond its remit and that a relaxation of controls risks undesirable outcomes that it will then be forced to explain.

In a statement issued to support its letter to Mr Gurr, the Labour Growth group said: “This is not about deregulation for its own sake, protecting consumers must always be a priority —it is about ensuring that regulation enables competition, attracts investment, and drives prosperity.”

Gregor Poynton, MP for Livingston said: “Competitive markets drive growth by lowering prices and spurring innovation, benefiting consumers and businesses across the UK. However, the CMA’s approach significantly impacts investor confidence in the stability of UK regulation. 

“Too often, it has overreached, stifling investment rather than ensuring markets work for consumers. With a new Chair and a government now providing clear direction to the CEO and organisation, the CMA has a real opportunity to support economic renewal.

“To achieve this, we in the Labour Growth Group urge the CMA to review its investigations and activities through a growth-focused lens. By doing so, it can set a benchmark for other regulators and help deliver the growth needed to raise living standards for the British public.”

Steve Race, MP for Exeter, said: “The Chancellor is right to take action to ensure the CMA is focused on playing an active role in generating economic growth as part of its competition and markets remit. 

Indeed, not only the CMA, but all our regulatory bodies, should be working actively to ensure they’re playing their part in boosting prosperity across the UK.

“It’s important that the CMA now concentrates on fixing the many real issues that exist across its remit. Instead of expending resource on continuous monitoring of issues that don’t exist – and which it has itself proven do not exist – the CMA should allow well-regulated markets to operate efficiently and companies to concentrate on growth and investment.”

The full letter is available here

See also

ICAS CEO expresses concerns over Audit and Corporate Governance bill