Blog

Other specific reforms that the government said it will take forward include changes to the system of merger review that currently operates.

The government said it will “consult in the coming weeks on proposals to provide greater certainty for businesses on whether transactions will be subject to merger control; proposals to ensure remedies are regularly reviewed; as well as changes to how the CMA [Competition and Markets Authority] makes decisions in mergers and markets investigations”. Those reforms, it added, would include “replacing the CMA’s panel model for decision-making by replicating the Digital Markets Board Committee model, for both the CMA’s mergers and markets functions”. It said the changes “will not alter the independence of CMA decision-making” from government.

Competition law expert Paul Williams of Pinsent Masons said the announcement builds on the UK government’s ‘strategic steer’ to the CMA earlier this year, emphasising the importance of economic growth and investment in the UK, and the government’s initial proposals to reduce regulation.

Williams said: “The CMA has already responded to this agenda by embedding new ‘4Ps’ principles – to improve pace, proportionality, predictability and process in its merger control functions and across its wider competition and consumer work – and has undertaken wide-ranging consultation on updating its guidance, including proposals for a more flexible approach to merger remedies. This evolving CMA approach looks to be further developed by reforms the UK government is now contemplating. Whilst the government strives for a more business-friendly regime to drive dealmaking, growth and investment, it will need to ensure the CMA’s independence and competition oversight role is safeguarded.”

The government has also invited businesses to have their say on what further regulatory reform it should pursue in future – including by highlighting specific “examples of specific rules that impose unnecessary costs or burdens” and by detailing how the way regulations are applied can “delay or prevent future business opportunities being taken up”. Businesses can provide their input via an online questionnaire up until 16 December.

Public policy expert William Hall of Pinsent Masons said: “With the government preparing for the crucial upcoming Budget, this regulatory reform package is one of many levers chancellor Rachel Reeves is pulling in an effort to boost economic growth.”

“Prime minister Sir Keir Starmer and his team have put effective delivery at the heart of their political vision for the country. They view economic growth through streamlined regulation, attracting investment and careful intentions as the key way to prove to the electorate that they have succeeded in delivering,” he added.

In relation to its AI Growth Lab plans, the government said the initiative will be modelled on existing regulatory sandboxes – such as the pioneering fintech sandbox run by the Financial Conduct Authority – but would be operate in a more dynamic fashion by providing for AI testing in response to specific innovation arising in the market.

This, it said, would “enable businesses and regulators to trial novel AI products and generate real-world evidence of their impact” in “live market environments with targeted regulatory modifications”. That testing would be undertaken with regulatory supervision and, the government said, could speed-up regulatory approvals and potentially drive “permanent” regulatory reforms.

More than half of British diners say rising prices are the main reason they are eating out less, according to YouGov data showing that overall 38% of people are visiting restaurants and other eateries less often than a year ago.

Among those cutting back, 63% cite higher costs as the main reason to dine out less frequently, according to the poll. Despite this downturn, more than two in five are still choosing to eat out at least once a month, while 8% of people say they never do.

UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.

However, inflation is still well above the government’s 2% target, and cost-conscious behaviours are on the rise. Nearly half of British diners say they have altered their dining preferences with a view to saving money. Of these, three in five say they are choosing cheaper restaurants, while 52% say they order fewer items, YouGov found.

Sarika Rana, director of consumer research at the polling and market research company, said dining out was “under pressure”. She added: “Six in 10 consumers say they are eating out at least once a month, yet nearly 38% of diners say they are doing so less than they did a year ago, citing rising costs. This represents an opportunity for more economic dining options. 59% of Brits who have altered their dining preferences say they are opting for cheaper restaurants.”

Sainsbury’s has just launched Taste the Difference Discovery, which the supermarket chain says offers restaurant-quality food that people can eat at home. It said that the new collection was designed to meet a growing demand for premium food as shoppers are increasingly dining in and looking for new ways to treat themselves at home. The range of more than 50 products includes British wagyu, Aberdeen Angus steaks, and modern Indian ready meals with a curated selection of wines and spirits.

Meanwhile the food entrepreneur Charlie Bigham has recently launched a range of luxurious ready meals in some Waitrose branches costing up to £29.95.

Amid increased operating costs and consumer caution, some restaurants have been struggling to survive. Pizza Hut announced the closure of 68 of its restaurants this week, putting as many as 1,200 jobs at risk, after the company behind its UK venues fell into administration. Eleven delivery-only sites will also close.

In July the trade body for the hospitality sector said data showed it had been the hardest-hit sector since the budget, accounting for 45% of all job losses. The chair of UKHospitality, Kate Nicholls, said: “The change to employer NICs in particular, was socially regressive and had a disproportionate impact on entry level jobs.”

The YouGov survey found that 79% of British diners believe restaurant prices have increased in the past year, with baby boomers – those born between 1946 and 1964 – most likely to notice the change.

Social media is the leading way consumers find restaurant deals, particularly among younger restaurant-goers. The poll of 2,000 people in Great Britain found 36% of people heard about restaurant promotions this way.