Ex-Google Chief Warns Red Tape is Stifling UK Growth

Eric Schmidt, the former CEO of Google, has expressed serious concerns about how excessive regulation and bureaucratic hurdles are hampering the economic growth of the UK. He believes these issues are also obstructing the country’s progress towards its net zero targets.

Call for Action at the Investment Summit

During an investment summit attended by Sir Keir Starmer, Schmidt emphasized the importance of reducing complicated regulations to foster a more conducive environment for investment and innovation. He proposed that the UK government should consider appointing a "minister of anti-regulation" specifically tasked with addressing these bureaucratic challenges.

Regulatory Delays Threaten Green Targets

Schmidt pointed out that delays caused by regulation are especially problematic for the UK’s green ambitions. He highlighted the commitment to reduce carbon emissions by 68% by 2030, as outlined in the Paris Agreement. Schmidt warned that without significant reforms, the UK risks missing crucial decarbonization milestones.

Government Acknowledges Regulatory Challenges

His comments gained further weight as government ministers recognized the ongoing struggles with slow connections to the power grid and other bureaucratic obstacles. Business Secretary Jonathan Reynolds confirmed that regulatory delays are among the foremost challenges hindering the UK's renewable energy initiatives, noting that projects such as offshore wind farms can take over ten years to receive the necessary approvals.

Criticism of Water Regulation and Infrastructure Investment

Chancellor Rachel Reeves also took the opportunity to criticize past regulatory failures regarding water services. She highlighted the crisis at Thames Water and stressed the urgent need for infrastructure investment. Reeves asserted that any increases in costs for consumers must go towards improving services rather than enriching shareholders.

Industry Voices Join the Call for Reform

Schmidt's advocacy for regulatory reform is echoed by other industry leaders. For example, Greg Jackson, CEO of Octopus Energy, has urged the UK government to eliminate obstacles to the installation of heat pumps, which are crucial for the nation’s green energy transition. Jackson criticized the requirement for planning permission for heat pumps, arguing that such regulatory barriers deter customers and slow down vital progress.

regulation, investment, growth