Sir Keir Starmer has instructed UK regulators to remove investment barriers to boost growth, sparking concerns of weakening regulations.
Keir Starmer (Image: Getty)
Keir Starmer has challenged Britain’s top watchdogs and regulators to propose pro-growth reforms, sparking criticism over his economic strategy.
In a letter sent on Christmas Eve, the Prime Minister demanded that agencies like Ofgem, Ofwat, and the FCA prioritise cutting red tape to stimulate investment, though critics accuse him of pushing the UK into a “regulatory race to the bottom”.
The directive is part of Starmer’s broader pledge to drive economic growth, but with official figures showing no growth in Labour’s first few months, some argue his focus on deregulation is a distraction from deeper structural issues, the Independent reports.
Naomi Smith, chief executive of Best for Britain, a cross-party internationalist campaign group said: “Achieving economic growth is vital if the prime minister is to deliver on his promises to the country but the answer is not a regulatory race to the bottom.
“Businesses need regulatory certainty to invest and the real barriers to growth that must be removed are those created by the Brexit deal which have artificially increased prices for consumers.
Sir Keir Starmer has written to Britain’s top watchdogs (Image: Getty)
She added: “The government can do both by committing to a policy of beneficial regulatory alignment with our largest market.”
Best for Britain has called on Starmer to prioritise repairing post-Brexit trade relations with the EU, arguing that easing trade barriers would deliver more sustainable economic gains.
Despite these concerns, Starmer has doubled down on his commitment to cut red tape.
At the government’s International Investment Summit, the Prime Minister said: “The key test for me on regulation is growth.
Rachel Reeves (Image: Getty)
“Where rules are holding back investment in housing, infrastructure, and connectivity, mark my words—we will remove them.”
Most regulators already operate under a statutory Growth Duty established in 2017, but Starmer’s letter represents a significant escalation of government pressure.
The drive for deregulation has already caused friction, particularly in the financial services sector, where ministers have clashed with FCA officials over competitiveness policies.
