CMA begins redundancy programme after overshooting budget
The competition watchdog is planning to slash its head count by around ten per cent after overshooting its budget last year, piling fresh pressure on the body following the sudden exit of its chair this week.
The Competition and Markets Authority (CMA), which has faced public anger from the Prime minister and Chancellor over its approach to growth, began a voluntary redundancy programme in December after overspending its budget, a person familiar with the matter said.
In a call with staff in December, chief executive Sarah Cardell revealed she would be looking to cut staff by around 100 – or some ten per cent of its workforce – the Financial Times reported today. She is said to have described the overspend as a “budgeting error”.
“This is an historic budget issue which has been addressed swiftly and appropriately,” a spokesperson said. “The CMA is fully focused on its priorities for the coming year including working with the government and the new interim chair to help deliver growth.”
The budgeting error will raise fresh questions over the leadership of the CMA following a bruising week in which its chair, Marcus Bokkerink, was forced out of his job in a clash with ministers.
At an event at Davos, Rachel Reeves said the government and Bokkerink had a “different approach” towards growth and he had agreed to step back from his role.
Ministers were said to be unimpressed by the CMA’s plans to boost growth after Reeves and the Prime Minister, Keir Starmer, demanded an action plan from 17 regulators on Christmas Eve.
One lawyer described the CMA’s measures as a “repackaged” version of its previously published annual plan.
Since Bokkerink took over in 2022, the CMA has faced a series of high profile run-ins with business leaders and Westminsiter over what has been regarded as an interventionist approach to deals.
It triggered backlash in 2023 after breaking with international peers to block the tie up between Microsoft and Activision Blizzard. It later approved the deal after concessions were made.