Labour MPs call on CMA to conduct rapid growth review

The Labour Growth Group of MPs on Sunday have revealed they’ve written to the Competition and Markets Authority (CMA), calling on new Interim Chair Doug Gurr and CEO Sarah Cardell to perform “a rapid review of all ongoing CMA work with a pro-growth lens.”

The group of more than 100 Labour MPs cited the increasing cost of regulation and rise in businesses struggling with red tape in recent years as a weight on investment and growth.

The said, “If the UK economy had grown at the average rate of OECD economies over the last 14 years, it would now be £143.3 billion larger—that’s £5,053 for every household and an extra £58 billion in tax revenues in the last year alone.

“This is how serious the issue of stagnant economic growth is to the people we represent, and why it is the number one mission of this Labour Government to change that.”

They argued that the organisation could set an example for others and 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.”