Consumer Policy for Economic Growth

In this paper, we make the case for why consumer policy must not be neglected as one of the key tools at government’s disposal to make markets work better and boost growth. Discussions about economic growth too often focus exclusively on the supply-side of markets, but by overlooking the importance of the demand-side we neglect a valuable set of policies that could invigorate the economy.

We explain how a consumer-centric policy approach in government could improve economic growth in essays across five chapters. In the first two essays we explain how the government can empower consumers to make markets more competitive and to support innovation. In chapter three we set out how inadequate enforcement of consumer protections negatively impacts businesses that want to compete fairly and so harms investment, and in chapter four how a failure to tackle economic crime leads to a leakage of productive resources out of the economy. Finally, in chapter five, we consider how consumer policy can be used to support equitable growth across the UK. 

In each chapter we have invited a leading voice from the business community to give their perspective on how a particular element of consumer policy can contribute towards economic growth. These contributions span the breadth of the UK economy, with essays from techUK, Energy UK, The Federation of Small Businesses, Nationwide Building Society and the entrepreneur Julian Richer. They bring to life how well-designed and well-enforced consumer policy can make a difference to the productivity and growth prospects of UK businesses across sectors of the economy. The report also has a foreword from the Consumer Minister, setting out the government perspective.

By bringing voices together, we demonstrate a collective understanding of the vital role consumer policy can play in improving economic growth.

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