Competition and Markets Authority Chairman

12:37:00

(Urgent Question): To ask the Secretary of State for Business and Trade if he will make a statement on the position of the chairman of the Competition and Markets Authority.

Following the resignation of the chair of the Competition and Markets Authority, Marcus Bokkerink, the Secretary of State has appointed Doug Gurr as the interim chair for a period of up to 18 months while our new permanent chair is appointed. The Secretary of State has expressed his gratitude for Marcus’s leadership of the board of the CMA since his appointment in September 2022, and for the work of the CMA in that time, particularly in response to cost of living pressures. As the Prime Minister set out in his speech at the international investment summit, this Government will ensure that every regulator in the UK focuses on growth. Given Doug Gurr’s background and experience as an entrepreneur and business leader, and his clear under-standing of the importance of new and developing technologies such as artificial intelligence, he will bring the necessary strategic leadership to the CMA to enable it to promote growth for the benefit of businesses and consumers. As set out in the industrial strategy Green Paper, the Government will shortly be consulting on a new growth-focused strategic steer for the CMA. While respecting the independence of the CMA and the decision making of its panel members, the steer will be clear about the Government’s expectations of the CMA in supporting growth across the economy.

I call the shadow Secretary of State.

Thank you for granting this important urgent question, Mr Speaker. What a desperate state we are in when the Business Secretary has to phone up the regulators to beg them for ideas to fix the lack of growth that his own Government’s policies have created. I hope that when the regulators attended the roundtable last week, including the chairman of the CMA, they had the courage to put at the top of their list scrapping the Business Secretary’s 150-page, job-destroying and trade union-inspired Employment Rights Bill; or to point out the jobs tax in the Chancellor’s Budget, Labour’s socialist attacks on inheritance and non-doms, and the family business death tax that is causing one wealth creator to leave this country every 45 minutes; or even to point out that one of the best opportunities that this country has for growth would be to get on a plane to our closest trading partner, the United States, and secure a trade deal, rather than lob juvenile insults at President Trump or fail to invite Elon Musk to the Government’s UK investment summit. It is certainly the case that, while regulators have a role, they generally depress growth and drive risk aversion, bureaucracy and slow decision making. Asking regulators to boost growth is a bit like asking the village speed watch to organise the next British grand prix. I am a fan of speed watch. The Conservative party is under new management, and we are unafraid to back wealth creators and risk takers. We are unashamed to say that we need fewer civil servants and arm’s length regulators so that our businesses carry less dead weight in the global race to be competitive, but dismissing the non-executive, part-time chair of the CMA seems a curious place to start. He is not responsible for day-to-day decision making at the CMA; that is the job of the chief executive. Did they aim and miss? Can the Minister confirm whether there are plans to change the Government’s view on the CMA’s remit, to play the ball and not the man? What evaluation has there been of all regulators as part of this process, and when will the Government publish it?

I think there were a couple of questions in there about the role of the CMA chair. Of course, he did not get sacked; he resigned. A new strategic steer for the CMA will be coming out in due course. The hon. Gentleman’s tirade of criticisms of this Government was a bit rich coming from a man who was in the Treasury when the last Government crashed the economy. I would point out that PwC announced only this week that we were the second most attractive country in the world to invest in, and that the International Monetary Fund last week upgraded our growth predictions for this year. We are going to be the highest-growing major economy in Europe this year, and that shows our determination to get the growth going, which was something that his Government failed completely on.

Getting the right regulatory environment is vital to drive innovation in our economy and also to protect our consumers and markets. Does the Minister agree that this renewed focus on the regulatory environment and getting it right to drive our economy will make sure that this Government deliver our No. 1 mission of growth?

My hon. Friend is absolutely right. Growth is the No. 1 mission for this Government, and getting the balance right between protecting consumers and driving up growth in the economy means that we all benefit. That is something we are very clear about on this side of the House, and something that the last Government failed to deliver on.

I call the Liberal Democrat spokesperson.

The Government are right to say that bold and ambitious steps are needed to get our economy growing again, especially after the damage caused by the previous Conservative Government, but we must also recognise that fair competition is the lifeblood of our market economy, which helps to drive innovation and ensures that economic benefits reach consumers. Does the Minister agree that ensuring proper competition in the economy is vital to achieving sustained growth? I also note that the new interim chair’s prior experience includes running Amazon’s UK business. Will the Minister guarantee that the digital markets unit within the CMA will be backed to hold powerful tech giants accountable, for the benefit of customers in Wokingham and across the UK?

We are absolutely clear that we need to protect consumers, but we also need to drive growth. The new interim chair’s experience will be really important in helping us to understand how the tech companies will move forward, and his chairmanship of the Alan Turing Institute gives him valuable experience to bring to the table in delivering on that.

I should declare an interest, having worked for a competition regulator for a number of years before entering Parliament. I suggest that the Minister does not take any competition policy lessons from the Conservatives, who oversaw the re-monopolisation of the broadband network, the consolidation of power within tech networks on an unprecedented scale, and the rise of crony capitalism on a scale not seen before. Some rumours around this appointment have suggested that it is a signal of a flight away from competition regulation. Can I urge him to quash those rumours and confirm that this Government believe that competition drives investment, innovation and growth, and that this country is open for investment and new market entry by as many companies as possible?

We absolutely agree that competition is vital for driving investment and growth. The CMA will remain operationally independent, as it always has been.

The Government seem fascinated by the price of Oasis tickets. Meanwhile, debt and the cost of debt are soaring. Should the Government—definitely, not maybe—come up with some ideas of their own for growth, rather than trying to copy the homework of regulators?

We have our own ideas for growth. We have important planning reforms coming forward, and the industrial strategy, which drives forward the strengths of the UK economy. As for the hon. Gentleman’s Oasis pun, I think he needs to work a bit harder on that one.

Having spent 15 years dealing with the CMA in my campaign to end the abuse of the secondary ticketing market, I have long felt that the CMA is in desperate need of much stronger and clearer ministerial oversight. Can the Minister confirm today which Minister will have oversight of the CMA, and that it will be an active role, not a role in name only?

I thank my hon. Friend for her work on secondary ticketing, a subject on which there is currently a consultation. I am the Minister responsible for the CMA. A new strategic steer for the CMA will be issued later this year, and of course it will remain independent from Government.

The clear issue here is why the previous chair resigned, and what remit the Minister has given the interim chair to change the policy and direction of the CMA. Can the Minister outline that remit for the House? He says he will do it later this year, but he has manoeuvred a position in which the previous chair has resigned. We need to know what the CMA will be doing now to regulate the market.

The CMA’s operational independence will remain intact. We have clearly set out that there will be a new strategic steer, which will be about boosting growth. After conversations, we have decided that new leadership is needed to deliver on that.

I should declare that before entering the House, I advised, as a competition lawyer, on various CMA matters, including investigations and panels. Some of the criticisms from Conservative Members seem half a world away, to channel Oasis, from both the topic in question and economic reality. Will the Minister confirm that yesterday’s announcement does not change the independence of the individual CMA panels that deal with matters before the CMA?

I can confirm that the CMA’s operational independence remains intact.

The power vested in large corporations is greater than ever. Tech giants are exerting monopolistic power over the market, so I am becoming exasperated with the Government’s Thatcherite-like attitude towards deregulation. Do the Government understand the risks involved in going for short-term boosts to growth over long-term stability of the economic market?

I would not accept the hon. Gentleman’s characterisation at all, and I am sure that Conservative Members would not, either. We announced only this morning that we will take action against Amazon on knife sales, so I do not think the characterisation that we are in the pocket of big tech is at all accurate.

The CMA took far too long to reach a decision on the Vodafone and Three merger. This slowed down the roll-out of 5G across all our constituencies and was a drag on growth. How can regulators be pushed to ensure that their decisions lead to growth?

My hon. Friend is right that we need to give the business community confidence that decisions will be made quickly to provide certainty, so that it can move forward with investments for the benefit of the whole economy.

What will be the impact on growth of a record number of millionaires having left the UK since the Budget?

That is a very interesting question. I am not sure that the CMA’s role is to monitor the number of millionaires leaving the country.

In 2023, after the CMA blocked a particular merger, the last Conservative Chancellor, the right hon. Member for Godalming and Ash (Jeremy Hunt), said that it must “understand their wider responsibilities”. He also said: “I do think it’s important all our regulators understand their wider responsibilities for economic growth.” He was right, was he not?

Yes, he was right. That is the message that the Prime Minister sent out to the regulators at the investment summit, and it is why they have been invited in to give their ideas on growth. We do not think that asking regulators how they are going to stimulate growth is a problem—that is the No. 1 mission of this Government, and everyone should be signed up to delivering on it.

I call Llinos Medi.

Diolch, Llefarydd. The Government say that the CMA’s chair had failed to convince them that he was sufficiently focused on growth, but at the same time, reports suggest that the Government plan to freeze all rail spending except for on three projects in England. A lack of transport funding is stifling growth in the Welsh economy. To prove his commitment to growth, will the Minister outline the transport funding that his Government have committed to Wales?

I thank the hon. Lady for her question. Unfortunately, transport funding—particularly in Wales—is well outside the CMA’s remit.

Does my hon. Friend agree that the UK’s economic regulators have a responsibility to ensure supersonic growth in our economy with a pro-business approach, and that this is part of what I would term a responsibility agenda? We all have a responsibility to ensure the best for our economy, and those regulators do as well.

My hon. Friend is absolutely right. We all need to be signed up to this agenda, which is absolutely critical for delivering on our aims of getting a better-growing economy, getting more money into people’s pockets, delivering on the promises we have made, and changing the tune after the last 14 years of decline.

Changing personnel is one thing, but when we speak to business, we hear that resolving disputes and the way in which the CMA does so is key. Could I urge the Minister to look at how disputes are resolved, and whether litigation and an antagonistic approach to business is the best way for the CMA to proceed?

That is a very fair comment. We need to give businesses certainty and clarity that things will be resolved quickly, so that they have the confidence to make investment decisions.

How does the Department plan to appoint the permanent chair?

The appointment of the permanent chair will take place in the normal manner, as all other appointments do.

An active regulator is essential to securing fair prices for consumers. Residents of areas such as mine are often at the forefront of rises in petrol prices, and residents of Pontardawe are regularly left wondering why they have to pay 8p more per litre than people in nearby towns. Will the Government commit to launching the Pumpwatch petrol price comparison platform, as recommended by the Competition and Markets Authority?

That is a very important point. Consumers see the petrol prices every time they leave their home in their motor vehicle. There is a disparity there that sometimes needs explanation, and certainly needs transparency, so I will take that issue up on the hon. Gentleman’s behalf, and will come back to him on it.

My constituents, particularly those living in Crookfur, have terrible mobile phone signal. How can the CMA progress the merger between Three and Vodafone, so that we get the investment in transmitters that we need to improve the mobile phone signal in Crookfur and around the country?

That is certainly something that the CMA has been dealing with, and I am sure that we will be able to provide my hon. Friend with an update shortly.

Will the Minister ask the Competition and Markets Authority to investigate why we have the highest energy prices in the world, particularly for electricity?

I will certainly pass that request on. That might be something that Ofgem would also have an interest in.

I thank the Minister for his responses so far. Does he agree that the first duty of the Competition and Markets Authority is to ensure that regulations are followed, and to break up monopolies at a time when our small businesses are suffering? The national insurance increase has not helped. If the CMA takes decisions that just so happen to have the by-product of stimulating economic growth, that is well, but the narrative that taking away regulation will promote growth is wrong.

It might be worth the hon. Member putting in for an Adjournment debate.

I thank the hon. Member for her question. It is important that consumers and small businesses operate on a level playing field; it is also correct that we are very keen to see more growth delivered. We think that will benefit everyone in the economy, but I take the point that a balance has to be struck.

Mr Grady, I think you have asked a question. [Interruption.] I think the Whips need to be advising you a bit more.

I thank the Minister for his answers. The role of the CMA chair is essential in the current economic climate, as we watch how our allies in the USA approach their trading and their deals. We need a message of strength; we need to relay the fact that we are ready and open for international business. Does the Minister believe that this interim measure sends that message, and how quickly can we get the right person in place to promote our business standing?

We are really serious about growth. This is about sending the message that we want to make sure that Britain is open for investment, and that we will work with partners across the world to encourage investment and get the growth that we want, for the benefit of the entire economy. This is just one part of the plan.