The UK’s Pro-Growth Regulatory Push: A Turning Point for SMEs and Fair Competition?

The UK Government’s decision to replace Marcus Bokkerink with Doug Gurr as interim chair of the Competition and Markets Authority (CMA) seeks to mark a bold step toward a “pro-growth” regulatory future. It’s a move intended to reflect the government’s ambition to stimulate investment, slash red tape, and supercharge economic expansion. 

But with this shift comes a critical question: Will this agenda empower the small and medium-sized enterprises (SMEs) that form the backbone of the UK economy, or will it tip the scales in favour of corporate giants? SMEs are critical to the UK’s economic fabric, employing 16.7 million people in 2023—61% of private-sector workers. An essential objective is to balance supporting SMEs and enabling larger firms to thrive. Given SMEs’ role as drivers of innovation, job creation, and local economic growth, they deserve proper consideration in shaping the UK’s regulatory future.

SMEs: The Powerhouse of the UK Economy

Small businesses, with fewer than 50 employees, accounted for 13.1 million jobs in 2023—nearly half of the UK’s private-sector workforce. In comparison, large corporations, despite representing only 0.1% of all businesses, employed 10.8 million people, or 39% of private-sector workers. The outsized role of SMEs in job creation is even more striking when looking at historical trends: between 1997 and 2008, small firms were responsible for 65% of all new jobs annually.

These statistics paint a clear picture—SMEs are not only essential to maintaining the UK’s economic engine but are also the primary drivers of employment growth. Any policymaker seeking to drive forward growth must recognise the critical role SMEs play. Just because these businesses may not have the loudest voice in the room doesn’t mean their contribution is any less significant; their success is vital to the country’s future prosperity.

Deregulation: A Double-Edged Sword for SMEs

For SMEs, a pro-growth regulatory framework offers both opportunities and challenges.

Streamlining excessive red tape can enable SMEs to focus on growth, innovation, and job creation rather than struggling with complex regulations. A renewed and broader emphasis on growth also has the potential to unlock vital resources—such as funding, tax breaks, and grants—providing entrepreneurs with the tools they need to scale their businesses and compete effectively.

However, when growth is prioritised from the perspective of the most dominant voices in the market, it risks skewing the playing field in favour of larger firms. This can allow them to consolidate power and marginalise smaller competitors. SMEs rely on fair and open markets to challenge incumbents, but weakening regulatory protections could entrench monopolistic practices, stifle innovation, and shut out new entrants. Without strong safeguards, the government’s push for growth may inadvertently harm the businesses it seeks to support and, in turn, undermine job creation, innovation, and local economic resilience.

What Doug Gurr’s Appointment Could Mean

The appointment of Doug Gurr as interim chair provides a clearer sense of the government’s regulatory direction. As Amazon UK’s former head and Director of the Natural History Museum, Gurr embodies private-sector expertise, particularly in technology and innovation. His appointment is intended to support wider messaging around a pro-growth agenda focused on reducing barriers and fostering a more business-friendly environment.

Gurr steps into the role as the CMA’s new digital markets regime takes effect, raising questions about how his experience at Amazon may influence the regulator’s approach to Big Tech. His leadership could signal a shift towards prioritising technological innovation and potentially easing regulatory pressure on major tech firms.

For large corporations, this could open opportunities to consolidate market positions through less restrictive merger oversight, boosting foreign investment. For SMEs, however, the stakes are much higher. Strong regulatory oversight is essential for maintaining fair competition and preventing monopolistic practices. If enforcement is weakened, smaller players could find it harder to compete, threatening innovation and reducing consumer choice.

That said, Gurr’s mix of public and private sector experience could offer a more balanced approach. His leadership has the potential to ensure growth-focused reforms do not come at the expense of fair competition, creating space for innovation while keeping markets open for SMEs.

Still, some argue the CMA’s challenges go beyond its leadership. Structural and resource constraints may limit the impact of Gurr’s tenure, raising doubts about whether this leadership shift alone can resolve the regulator’s deeper issues.

A Crucial Moment for the UK Economy

The UK is at a crossroads. The government’s pro-growth regulatory push has the potential to unlock economic dynamism, attract investment, and empower businesses of all sizes. But to succeed, it must recognise the importance of SMEs. Yes, they are the heart of local communities, but they are also the spark of innovation and the foundation of future growth.

Doug Gurr’s leadership at the CMA could become a defining moment. By championing reforms that empower SMEs while fostering robust competition, he has the opportunity to position the UK as a global leader in entrepreneurship and innovation. However, if the balance shifts too far in favour of large corporations, the vibrancy of the UK economy could suffer. With fresh enforcement actions expected against tech firms, alongside the ongoing work of the Digital Markets Unit and the implementation of the Digital Markets, Competition and Consumer Act, the direction of travel may soon become apparent.

This is more than just a regulatory shift—it’s an opportunity to shape a fairer, more dynamic economy where businesses of all sizes can thrive. The stakes couldn’t be higher, and the rewards couldn’t be more significant. The UK must seize this moment with vision, balance, and an unwavering commitment to innovation and competition.

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