How to deliver tangible growth in consumer markets

How to deliver tangible growth in consumer markets 995 KB

Driving economic growth is a core priority for the Government and the lens through which nearly all policy problems and potential solutions are being scrutinised. The Government has also identified raising living standards as one of the key milestones for delivering on its growth mission.

Day in and day out our frontline advisers see the devastating real world impact of economic uncertainty on people's lives. As the People’s Champion we give people the confidence they need to find their way forward - whoever they are and whatever their problem. The stories we hear and the real time data we gather from these interactions also allows us to build a unique and troubling picture of the scale and severity of the living standards challenge people, and the Government, are facing.

Citizens Advice agrees that a strong economy is essential if we are to address the biggest issues driving the problems which our clients face, and therefore support the government’s drive for growth.

But, for your average person, growth is an abstract concept with little meaningful connection to their lives and the problems they are facing. For them, the endless political commentary and debate centering around fractions of a percentage point here or there means very little.

The millions of people who come to Citizens Advice for help each year need to know what the Government, and economic growth, will do to help them, their families and communities thrive instead of barely surviving. They need tangible growth, which puts more money in their pockets, sustainably brings down the cost of essentials, invests in their services and makes their lives easier.

As well as easing the pressure on household budgets currently strained beyond breaking point, more disposable income will give people the ability and confidence to spend more - further boosting growth.

In public debate, growth and regulation are often pitched against each other. Regulation is labelled ‘red tape’, something which must be removed in order to deliver growth. In some cases this can be true, particularly where complex rulebooks have built up over time, often with multiple overlapping regulatory bodies involved. So it makes sense to regularly review rulebooks to make sure they remain relevant and proportionate.

But our experience and insights tell us that one of the essential components of delivering tangible growth is ensuring that people have the confidence to engage in consumer markets, and are protected from harm when they do so. This simply cannot be delivered without effective and proportionate consumer protection regulations in place.

So the debate we should be having is not protections vs no protections - but which consumer protections will deliver tangible growth for people, and how the system of regulation and enforcement should work.

The evidence base on the interaction between consumer protection and growth is surprisingly underdeveloped. This paper, based on a literature review by Frontier Economics 659 KB and our extensive frontline data and consumer research, brings existing evidence together and sets out where Citizens Advice sits in this debate. We hope that this is the starting point of a conversation with Government, regulators, industry and other interested stakeholders on how we can work together to deliver the tangible growth households across the country desperately need in a safe and sustainable way.