The Chancellor will meet regulators today to drive home the government’s message that it expects them to allow firms to drive for growth.
Rachel Reeves has summoned the Competition and Markets Authority, communications regulator Ofcom, water regulator Ofwat, and the energy regulator Ofgem to No 11 and expects to hear ideas from the watchdogs on how they will allow innovation and investment across their sectors.
The Office of Rail and Road, the Environment Agency and the Civil Aviation Authority are also due to appear at the noon meeting as well as business secretary, Jonathan Reynolds.
“I am determined to go further and faster to kickstart economic growth,” Reeves said in a statement. “Today I will be pressing regulators on what more they can do to deliver growth.”
The meeting comes as data today shows that the economy returned to growth in November, driven by the service industry, albeit at a slightly slower rate than expected.
Gross domestic product rose by 0.1%, according to the Office for National Statistics, although economists had expected 0.2% growth. In October, gross domestic product fell by 0.1%.
Earlier this week, the Federation of Small Businesses wrote to the Financial Conduct Authority and other regulators backing the Chancellor’s call to ease red tape.
The Federation of Small Businesses policy chair Tina McKenzie said: “Regulators must grasp this opportunity to propose small business growth measures within their activities and remits.
“We’re also keen to see ministers and all public bodies to put their shoulders to the wheel on growth, alongside business and industry.”
But FCA chair Ashley Alder argued that standards must remain high among financial firms when he appeared before the Treasury Select Committee in December.
Alder said: “This is not a return to pre-crisis light touch regulation. Because, frankly, that ended in tears. Not just in the UK, but elsewhere.”
This came after Reeves argued in her November set-piece Mansion House speech that regulatory changes to eliminate risk after the financial crisis had “gone too far” and watchdogs should now have “a greater focus on supporting economic growth.”