📈 Regulators (Growth Objective)

Commons Chamber

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Luke Murphy introduced a Bill to make economic growth a priority for UK regulators, arguing that the current regulatory system is overly complex and hinders business innovation and investment. The Bill aims to streamline regulation, reduce duplication, and align regulatory efforts with national economic goals, while still protecting safety, the environment, and public trust. Examples from Japan and the UK’s fintech sector illustrate how smart regulation can drive growth and productivity. The Bill passed its first reading and is set for a second reading on July 4th.

Summary

  • Introduction of the Bill: Luke Murphy (Basingstoke) (Lab) introduced a Bill that aims to incorporate economic growth as an objective for certain statutory regulators.

  • Current Regulatory Challenges: The existing regulatory system is criticized for being tangled, inefficient, and disconnected from promoting economic growth. Businesses face overlapping and complex regulations from too many regulators, which slows down investment and innovation.

  • Government’s Commitment: The current government is focused on implementing smarter regulation that supports growth, innovation, and workers. The Prime Minister, Chancellor, and Business Secretary are leading this initiative.

  • Example of Regulatory Overlap: The Payment Systems Regulator’s responsibilities have been consolidated into the Financial Conduct Authority to simplify the process for businesses and reduce costs. This is highlighted as an example of necessary reform.

  • Systemic Need for Change: The entire regulatory framework needs to be reviewed and streamlined to focus on economic growth. The Bill supports the government’s action plan to create a more agile and investment-friendly regulatory environment.

  • Balanced Regulation: The government emphasizes that regulation can serve multiple priorities, such as environmental protection, public trust, and higher living standards, while still promoting growth. The new deal for working people is cited as an example of purposeful regulation.

  • International Examples: The Bill draws inspiration from successful regulatory approaches like Japan’s Top Runner programme and UK financial regulators’ initiatives, which have spurred innovation and economic growth.

  • Proposed Changes: The Bill would mandate regulators to consider the impact of their decisions on investment, innovation, and prosperity. It aims to align regulators with the government’s growth strategy and reduce duplication.

  • Legislative Action: The Bill calls for a full review of regulators’ duties and objectives to create a simpler, smarter framework. It proposes a core set of statutory duties across the regulatory landscape, including growth, to promote long-term investment and protect consumers and the environment.

  • Next Steps: The Bill was agreed upon and will be read for the second time on Friday, 4 July. It is presented by Luke Murphy and a team of co-sponsors.

Divisiveness

The transcript provided shows a parliamentary session where a motion for leave to bring in a Bill is proposed by Luke Murphy. Throughout the session, there is no explicit disagreement or opposition voiced by any member of the House. Luke Murphy presents his arguments in favor of the Bill without interruption or counterarguments from other members. The session concludes with the question being put and agreed to unanimously, indicating a lack of dissent.

Examples of potential disagreement points, such as the impact of the proposed changes on labor markets or the environment, are addressed by Luke Murphy in a way that pre-empts and counters potential criticisms, but no actual disagreement is expressed by other members. The session is characterized by a singular, uninterrupted presentation of the Bill’s objectives and benefits, followed by immediate acceptance.

Given the absence of any voiced disagreement or debate, the session is rated a 1 for disagreement, indicating minimal to no disagreement displayed.