The UK government has issued a new "strategic steer" to the Competition and Markets Authority (CMA), directing the competition watchdog to prioritise economic growth while maintaining effective competition and consumer protection.

Announced on Thursday, the strategic steer resets the CMA's priorities with a focus on minimising uncertainty for businesses by encouraging more proactive, transparent, timely and responsive regulatory engagement.

Business secretary Jonathan Reynolds said: "This government believes in promoting and protecting competition – that is fundamental to our growth mission and Britain's modern Industrial Strategy. Our economic regulators are crucial to creating the conditions for increased growth and investment. This steer sets out the government's priorities for the CMA."

The document forms part of the government's wider agenda to reform regulation to drive growth and investment. The Treasury-issued directive mentions "growth" at least 17 times, signalling that the government wants the regulator to avoid taking steps that could harm the economy.

Chancellor of the Exchequer Rachel Reeves said: "Competitive markets are more important than ever for attracting investment into the UK and driving economic growth, and our new Strategic Steer for the CMA will help us achieve these goals, making Britain the best country to do business."

The CMA has already set out plans to address these issues, announcing a new commitment to improving the pace, predictability, proportionality and process of their investigations.

Sarah Cardell, chief executive of the CMA, said: "The Strategic Steer reinforces the importance of a strong, independent competition and consumer protection regime, whilst situating this squarely in the context of the growth mission. The steer provides helpful clarity on how the CMA should prioritise and go about our work, promoting competition and protecting consumers with a sharp focus on supporting higher levels of investment and economic growth."

The CMA has been instructed to collaborate with interested parties to ensure growth and innovation benefits are prioritised, including supporting the government's AI opportunities action plan. It has also been told to act "as swiftly as possible" when investigating competition concerns.

This move follows the government's replacement of CMA chair Marcus Bokkerink in January, citing a "different approach" on economic growth, in what was widely seen as a signal of the seriousness of its agenda.

The government expects the CMA to clearly communicate how it is taking account of the steer and report on its application in practice in its annual report.

The watchdog is currently investigating the proposed £3.7 billion takeover of Direct Line by insurance giant Aviva, which could serve as a key test case for how it balances its new growth-focused mandate with its regulatory responsibilities.

---