Yesterday’s publication of the House of Lords Industry and Regulators Committee’s (Committee’s) report, “Time is money: How regulators can support growth” is a welcome contribution to the thinking going on in and outside government in the UK over how to ensure regulators support innovation and growth. It reflects a number of points raised by the Computer & Communications Industry Association (CCIA) in its evidence regarding regulatory certainty, proportionate intervention, and frameworks that can respond effectively to innovation.
In its evidence to the inquiry in January 2026, CCIA highlighted the risks that overlapping regulatory requirements, uncertainty around future interventions, and divergence from international norms can create for investment in the UK digital economy. CCIA specifically pointed to the cumulative impact of obligations arising across competition, privacy, online safety and investigatory powers regimes, particularly uncertainty around the Competition and Markets Authority’s (CMA) use of powers under the Digital Markets, Competition and Consumers Act. The Committee’s final report similarly highlighted the importance of providing “speed and certainty” for businesses, alongside the flexibility to respond to innovation.
The Committee concluded that one of the most important contributions regulators can make to growth is improving the pace and predictability of regulatory decision-making, noting that delays and uncertainty can make the UK a less attractive destination for investment. It also recognised the need for regulatory frameworks to adapt to new technologies and rapidly changing markets, including AI.
The only caution here is that the role of “pace” can depend on the context, as CCIA argued in earlier evidence when the Government was considering its strategic steer to the CMA, acting swiftly is appropriate in situations where regulators are otherwise holding up often time-sensitive investments (e.g. delaying a merger but more of a mixed bag where it is using new powers or implementing novel interventions. The last thing the economy needs is regulators rushing risky, transformative changes, particularly in markets where consumers are broadly happy with the options available to them (if they should be intervening at all). That is why balancing pace with predictability is so important. Regulators should not be springing surprises in complex, functioning markets.
The Committee’s report also recognised the need for regulatory frameworks that can adapt to new technologies without creating unnecessary costs or uncertainty for businesses. There are excellent opportunities here to ensure that regulators can provide businesses with appropriate flexibility, but also that they have the right guardrails (e.g. external review from the courts where necessary) to reassure companies investing in the UK. CCIA’s evidence highlighted the growing challenge of overlapping obligations across competition, privacy, online safety, and security regimes, particularly where compliance processes are unclear or duplicative. One area where the report could have gone further was on the role of different institutions in delivering reduced costs over time. For example, attendees at a recent CCIA AI Roundtable discussed how Parliamentary committees and expert institutions like the UK Regulatory Innovation Office (RIO) or the National Audit Office (NAO) might work together to scrutinise the burden regulators are imposing.
The Committee also recognised the importance of international alignment and reducing regulatory friction, especially in areas like AI where fragmented approaches risk undermining investment and innovation, calling on the Government to provide clearer direction on alignment and mutual recognition with other jurisdictions. An example here would be in AI where CCIA’s Trade team wrote in 2023 about principles for a competitive global AI market.
The Committee’s report is a welcome contribution to the ongoing debate about what businesses really need from regulators if the UK wants to be a good place to invest, build and innovate. There is still much more to do to make sure the system gives companies enough certainty and flexibility to back long-term investment in the UK, particularly in fast-moving digital markets. CCIA looks forward to continuing to work with policymakers and regulators on how to get that balance right in practice.
