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"Regulators are the brakes of industry, businesses the throttle"

ended 30. December 2024

With the economy in reverse and recession on the cards, the Government has written to regulators such as the FCA, Ofwat and Ofgem to help create a regulatory environment that enables growth, asking them to respond with ideas by mid-January. Business owners were nonplussed, with one saying: “Asking civil servants to create an environment that fosters growth is absurd and shows how out of touch this government is with the businesses that power the economy.” A second added: “Asking regulators for growth ideas is like asking a vegetarian how they like their steak cooked.” A third said “this is a roundabout way of finding scapegoats”, while a fourth observed: "Regulators are the brakes of industry, businesses are the throttle. You can’t have one without the other, but for ideas for rapid growth the first port of call should have been the companies, the innovators, not those who regulate them. Then those ideas could have the safety switch of regulation fitted and calibrated to give the desire outcome of growth, but within acceptable parameters." The views of 14 business owners are below.
 

14 responses from the Newspage community

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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
Asking civil servants to create an environment that fosters growth is absurd and shows how out of touch this government is with the businesses that power the economy. UK Plc is on red alert and to see the government turn to regulators to try to get it firing is another massive red flag. If they want to give the economy a chance then U-turning on some of the fiscal insanity announced in the Budget would be a good place to start. Having experienced business owners in pivotal Government roles would also help as it would drive more commercial thinking across departments.
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Sam Alsop-Hall
Chief Strategy Officer & Co-Founder at Clive Henry Group
Asking regulators for growth ideas is like asking a vegetarian how they like their steak cooked. Ask the entrepreneurs who drive the economy instead. My business was named the second fastest growing privately owned company in the UK last year, and my phone hasn’t rung once. Further proof that Keir & Co haven’t go a clue and have as much business experience as a goldfish running a tech startup.
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Simon Bridgland
Broker at Charwin Private Clients
Regulators are the brakes of industry, businesses are the throttle. You can’t have one without the other, but for ideas for rapid growth the first port of call should have been the companies, the innovators, not those who regulate them. Then those ideas could have the safety switch of regulation fitted and calibrated to give the desire outcome of growth, but within acceptable parameters.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Britain’s economy teeters on recession, and Labour’s response is laughable at best. Starmer’s government has bizarrely tasked regulators like the FCA, Ofwat, and Ofgem (rule enforcers, not economic architects) with jumpstarting growth. It’s like hiring a traffic warden to fix gridlocks on the M25. Meanwhile, the Chancellor refuses to tackle the real issues of spiralling energy costs, crumbling productivity, and a stifling regulatory environment. Labour’s strategy is painfully clear: pass the buck, avoid accountability, and wrap inaction in bureaucratic red tape. Instead of engaging with businesses or innovators, they’ve handed the reins to institutions bound by procedure, guaranteeing more stasis than solutions. This isn’t leadership; it’s dithering on an industrial scale. Starmer’s government risks becoming a monument to mediocrity, a legacy defined by empty gestures and wasted time. If this is their idea of governance, Britain’s prospects look as bleak as their policies.
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Richard O'Connor
Director at First Mats
This approach reinforces my belief that Labour came into government without a real plan. Asking regulators for ideas to stimulate the economy is a misstep. It's like asking a dentist to come up with a new sugary drink. What’s even more concerning is the lack of business ownership experience within government. It feels like Labour is unwilling—or even afraid—to engage with the private sector. As a business owner, it’s frustrating to see them avoid talking to people like me, who are on the front line of driving growth, creating jobs, and innovating. If economic growth is truly their top priority, they should be speaking with leaders, entrepreneurs, and industry experts from across the business spectrum. These are the people who understand what’s needed to get the economy moving in the right direction. Until they do, I fear we'll continue heading towards a deep recession.
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Kevin Drew
Managing Director at Ascentant Accountancy
The Government should be consulting the FSB, CBI and Chambers of Commerce to advise on creating economic growth, i.e. the bodies that represent those who will create it. Increasing access to affordable funding for small businesses, incentives to upskill staff or take on apprentices and business rates or tax reliefs should be a priority for growing businesses. Incentives and support should be available for startups and new busineses to mentor them, support them and help them to grow, employ staff and contribute to their local economy and put revenue into Local Authority and Treasury coffers. This needs to work, be accessible and be managed at a local level from local Town and City Authorities rather than trickle down from Government Departments or Regional Schemes that lack local insight into local issues or needs. This does also mean more Enterprise Advisors and Business Growth specialists employed by Local Authorities.
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Rachael Dines
Founder & Director at Shake It Up Creative
The Government recommends that local authorities put Economic Growth Boards in place and then dons its ear defenders. It was only last year when regulators were under review in a bid to cut red tape following a third of small businesses saying they were held back by their regulatory bodies. Now that business owners like myself have an opportunity to contribute ideas for a growth environment through our County Boards, we are overlooked. With just ninety UK regulators in place, there are thousands of businesses in thriving sectors that could collaborate to voice ideas or drive real growth. It's a shame there's now a perceived urgency that has made the Government take the easier and undoubtedly rather quixotic approach that it has, excluding so many innovative minds.
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Ben Perks
Managing Director at Orchard Financial Advisers
Boots on the ground know best. By all means chat with regulators, but urge them to liaise with the organisations beneath them.
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Justin Moy
Managing Director at EHF Mortgages
This is a roundabout way of finding scapegoats. It’s obvious Labour have run out of ideas with so little practical business experience on the front bench. A terrible way to run the country is to cause no end of issues in a fiscal statement and then ask industry to work out how to solve this mess.
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Wes Wilkes
CEO at IronMarket Wealth
We should be seriously concerned about the prospects for Britain's economy right now. We have a government that hammers business and entreprenurship with damaging fiscal policies then asks regulators for help on growth. No economy has ever regulated its way to growth. Why don't they ask businesses and entrepeneurs how to generate growth? They've got James Timpson as an adviser and John Caudwell as a huge donor so if they are supportive of this approach, then I worry for their reputation, too.
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David Stirling
Independent Financial Adviser at Mint Wealth
What this government needs is some blue sky thinking, and asking the civil servants that create the governance and rules for industry how to think outside the box, shows how out of their depth Starmer and co are. With the October Budget yet to be fully felt by businesses, they do have a chance to U-turn on decisions that have been shown by businesses to be potentially catastrophic. Almost as catastrophic as asking the FCA, Ofcom and Ofgem how to boost the economy.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Asking regulators for plans and ideas for growth shows the government has even less idea about how business and the economy works than initially thought. The best idea for growth is to unwind the recently announced tax on jobs, which will shortly lead to layoffs and stagnation.
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Iain Swatton
Director at Exemplar Financial Services
Two months ago, Keir Starmer hosted a UK Growth Summit but now, they seem to be turning to quango administrators for ideas on how to drive economic growth, raising questions about their economic expertise. Starmer’s call for regulators to propose growth strategies underscores this perception, while previous claims that “We’re ready to govern, and every policy is fully costed and ready to go” now feel increasingly hollow. After 14 years in opposition, one might have expected more concrete plans, but having achieved their political goals, delivering meaningful results for the public appears to be a significant challenge.
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Rakesh Dua
CEO at DUA Accountancy & Business Consultancy
It’s great they are taking action but they are going to the wrong source of help. Historically regulators are cautious and slow, often not in touch with what’s happening on the ground. If this government were serious, it should create an urgent issues task force made up of business leaders from all sizes of business based across the country with a mandate to stimulate and suggest actions ahead of the March budget and a June inward investment conference. These recommendations would then be pushed to cabinet ministers to urgently champion. To save the economy urgent measures need to be applied and the brakes firmly lifted to allow some movement and fluidity.