Government unveils next steps for making the CMA pro-growth

(by Karma Loveday)

More of the Competition and Markets Authority’s (CMA) key guidance documents will need approval from the secretary of state under plans out for consultation from the Department for Business and Trade (DBT).

The Department is running a consultation until 31 March on Refining our competition regime. It said the aim is to “ensure the framework continues to promote effective competition, support economic growth, and deliver benefits for consumers and businesses, while maintaining the independence of the CMA”.

Independent competition regulation has been the bedrock of the UK’s approach for over 25 years.  Changes have already been introduced by the CMA following the Strategic Steer issued by Government in May 2025. The consultation reported: “Under the leadership of CEO Sarah Cardell and interim chair Doug Gurr, the CMA has delivered tangible results through its ‘4Ps’ framework to improve pace, predictability, proportionality and process of engagement. This consultation complements those changes by proposing legislative refinements to support the CMA’s operational transformation and ensure the UK remains a ‘best in class’ competition regime.”

Among the proposals were: 

• Extending the range of guidance documents for which approval from the secretary of state is required, from only those concerning the digital markets regime, civil penalties and international cooperation, to a wider range, including the Merger Assessment Guidelines. 

• A new decision-making model for the markets and mergers regimes, to enhance the CMA board’s involvement and accountability. 

• Enhancing the markets regime by streamlining to reduce review times, improving the flexibility of the concurrency framework, and measures to ensure market remedies remain necessary and proportionate. 

• Providing greater certainty on when mergers will be subject to investigation by the CMA, and providing more time to agree remedies following Phase 1 merger investigations.

• Stronger CMA powers to investigate algorithms across its competition and consumer protection responsibilities. 

• The National Audit Office has reported on delivery to date of HM Treasury’s (HMT) March 2025 Action Plan to encourage regulators and regulation to support innovation and economic growth, and to cut the administrative burden on business by 25% by the end of the Parliament. The report covered:

• DBT’s and HMT’s response to the Action Plan, progress to date, and the challenges to delivering the vision laid out in the Action Plan.

• Lessons from related regulatory initiatives and the implementation of the 2017 Growth Duty, and how regulators are held to account.

• How regulators can support long-term growth, and examples of actions regulators are undertaking in the pursuit of growth.

The NAO found evidence that regulators are implementing changes in response to the Growth Duty, and the new Action Plan is stimulating further action. However, it could not conclude whether this has had a material impact on growth, “because DBT and HMT do not have the data”. 

The NAO recommended: 

• DBT and HMT must articulate how regulation can support growth and manage risk to individuals and the environment simultaneously, and acknowledge the trade-offs regulators face. “At present DBT and HMT are not helping departments articulate their risk appetite, which can make it challenging for regulators to operate in line with their sponsor department’s expectations.”

• DBT and HMT should prioritise actions that have the greatest impact and implement structured monitoring of both impact and outcomes. 

• DBT and HMT must formalise an implementation plan around which departments and regulators can coalesce with effective governance arrangements to monitor outcomes for growth and hold departments and regulators to account.