LONDON (CU)_A leading Tory MP has called on the government to launch extensive reforms of competition laws which will lower costs of businesses and improve consumer confidence, thereby boosting the UK economy following Brexit.
John Penrose, commissioned by the government last year to explore post-Brexit opportunities for the country’s competition policy, said that ministers needed to launch a new parliamentary act which will reform and update Britain’s consumer institutions in order to reflect the rise of the digital economy.
Moreover, the MP also called for changes which would bestow more power in the Competition and Markets Authority (CMA), the government department responsible for overseeing business competition, so that the regulator may impose tougher penalties to companies that do not cooperate fully in investigations.
In the report published on Tuesday (Feb 16), Penrose recommended the establishment of a mechanism that will enable customers to compare the “price” of free online services.
The “CMA must consider how to improve transparency of the price consumers are paying through their data for digital goods and services, so they can make informed choices about whether each one represents good value or not, and whether they wish to switch to others which might be better,” the report said.
The report was published amidst a chorus of complaints issued by business leaders over the government’s handling of Brexit, while some ministers attempt to dismiss these problems saying that leaving the EU will present businesses and consumers with new opportunities that will boost the country’s economy.
Meanwhile, British exporters have expressed their disappointment over mounting paper work and delays in deliveries, issues which have been described by Prime Minister Boris Johnson “teething problems” which will eventually fade away.
Pointing out that the opportunities for post-Brexit Britain to cut red tape costs “ought to be immense”, Penrose, in his report, also recommended that ministers reintroduce a “one in, one out” rule used by former Prime Minister David Cameron’s coalition government that forced ministers to scrap an old regulation if they wanted to launch a new one.
Meanwhile, UK’s Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng, said the government would consider the findings of Penrose’s review. “The UK’s competition laws and institutions are highly regarded across the globe. However, as we build back better from the pandemic and start life as an independent trading nation, we have a golden opportunity to strengthen that reputation,” he said.
