‘Deregulation is essential’: Starmer vows to slash red tape in bid for growth
Keir Starmer vowed to deregulate Britain and cut through “thickets of red tape” today as he tried to reboot his government’s handling of the economy following months of anaemic growth and criticism from business.
In an article for the Times, the Prime Minister wrote “deregulation is essential” and warned investors were shunning the UK due to its morass of rules, in what will be seen as the government’s most direct attack yet on public sector watchdogs.
Both Starmer and the Chancellor, Rachel Reeves, have taken aim at regulators in recent weeks and wrote to 17 watchdogs on Christmas Eve demanding they set out plans to boost the economy.
The Competition and Markets Authority last week felt the wrath of the pair as they ousted chair, Marcus Bokkerink, over what was described as “different approach” to growth.
Writing today, Starmer said stripping regulators of their power would form an essential pillar of the government’s pledge to deliver growth.
“This may seem like an unusual goal for Labour politicians. But deregulation is now essential for realising Labour ambitions in this era – a crucial component of my Plan for Change,” he said.
“If we don’t deregulate the planning system, then we cannot spread the security of home ownership to the next generation. If we don’t simplify environmental protections, then we cannot decarbonise our electricity grid and generate cheaper, homegrown energy.
“If we don’t curb regulator overreach, then we won’t unlock the investment needed for a more prosperous future.”
Starmer’s comments came ahead of a speech by Reeves in which she will pledge to create the “Silicon Valley of Europe” by connecting Oxford and Cambridge more closely.
As part of the plans, the government will commit to a rail link connecting the two university cities and build thousands of homes in Cambridge.
Reeves and Starmer are attempting to reset the narrative on the economy following a barrage of attacks from business over their October Budget, in which they laid out more than £40bn worth of tax rises primarily targeting the private sector and the wealthy.
Despite repeatedly claiming growth is the government’s “number one mission”, the economy has flatlined since they came to power in July and they have faced criticism for ‘talking the UK into a downturn’ by hammering home the dire state of the public finances.
Borrowing costs also rocketed in early January amid fears over the sustainability of the UK’s fiscal position.
Opposition figures attacked the government’s plans today. Mel Stride, the shadow Chancellor, said: “The biggest barriers to growth in this country are Rachel Reeves, Keir Starmer and their job destroying Budget.”