The chairman of the UK’s competition watchdog stepped down earlier this week because he had a “different strategic approach” from the Government, the Chancellor has said.
Rachel Reeves told an audience in Davos, Switzerland, that Marcus Bokkerink believed he needed to “make way for somebody who does share the mission” of the Labour Government.
He left his position at the Competition and Markets Authority (CMA) earlier this week and will be replaced by former country manager of Amazon UK Doug Gurr.
Nevertheless, ministers stressed on Wednesday that the organisation’s independence will stay “intact”.
The Government has demanded that regulators, including the CMA, prioritise supporting growth as well as regulatory responsibilities.
Ms Reeves and Business Secretary Jonathan Reynolds called bosses of UK regulators to Downing Street last week to spell out their strategies in order to drive growth.
The Financial Times reported that they raised concerns over the CMA’s approach to sectors they believe are key for driving growth.
Speaking in Davos hours after Mr Bokkerink’s departure, Ms Reeves said: “Now, of course, the regulators are independent, and the chair of the CMA decided to step down, but he recognised that this Government have got a different strategic approach when it comes to regulation.
“He recognised it was time for him to move on and make way for somebody who does share the mission and the strategic direction that this Government are taking.”
In recent days, the Chancellor has received letters outlining plans from regulatory bodies.
She added: “I’ve got to say, the responses we’ve had, a lot of them have been incredibly positive about things that they can do.”
In Parliament later in the day, business minister Justin Madders said: “The CMA’s operational independence is going to remain intact.
“We’ve obviously very clearly set out there will be a new strategic steer, which will be about boosting growth, and we’ve decided, after conversations, that actually new leadership is needed to actually deliver on that.”
The change in leadership at the CMA follows criticism of the watchdog, including from Prime Minister Sir Keir Starmer, after businesses complained it intervenes too much in deals.
At an investment summit in October, Sir Keir said the Government “will make sure that every regulator in this country, especially our economic and competition regulators, takes growth as seriously as this room does”.
The CMA was also publicly criticised by Microsoft after it initially blocked the tech firm’s planned takeover of gaming giant Activision Blizzard.
Microsoft president Brad Smith said in 2023 that the UK was “bad for business”, although the deal was eventually given the green light.
Last week, the Financial Conduct Authority (FCA) was among regulators to tell Government it will “take greater risks” to support its drive for more economic growth.
However, it also warned that this strategy could lead to more failures and potentially affect consumers and firms.
Bosses at the FCA are set to face questions from members of the House of Lords’ Financial Services Regulation Committee later on Wednesday.
