Boosting trading standards teams could help level up the economy, says Conservative MP John Penrose

Trading standards teams should be given extra powers and minimum staffing levels in a move which would "raise the local competitive temperature for all firms in every part of the country" and aid the Government's levelling up agenda, a Tory MP has claimed.

John Penrose, who was commissioned to write the report on competition by Chancellor Rishi Sunak, said a more competitive environment for businesses would help close the gap between London and the South East and the rest of the country.

And he says stronger consumer rights through 24/7 dispute resolution services and the creation of new fast-track competition courts for local and regional cases would help improve productivity of local firms.

Read More
Call to mirror Thatcher’s radicalism by unleashing a new ‘Northern Big Bang' to ...
A picture of the Bradford skyline. In West Yorkshire, a recent operation between West Yorkshire Trading Standards and West Yorkshire Police targeting dealers of cheap and illicit tobacco resulted in a seizure of 125,000 cigarettes and 4.9kg of hand rolling tobacco. Pic by Tony JohnsonA picture of the Bradford skyline. In West Yorkshire, a recent operation between West Yorkshire Trading Standards and West Yorkshire Police targeting dealers of cheap and illicit tobacco resulted in a seizure of 125,000 cigarettes and 4.9kg of hand rolling tobacco. Pic by Tony Johnson
A picture of the Bradford skyline. In West Yorkshire, a recent operation between West Yorkshire Trading Standards and West Yorkshire Police targeting dealers of cheap and illicit tobacco resulted in a seizure of 125,000 cigarettes and 4.9kg of hand rolling tobacco. Pic by Tony Johnson
Hide Ad
Hide Ad

But Mr Penrose, a former junior Minister who is married to NHS Test and Trace head Dido Harding, says trading standards teams have an essential role in ensuring local economies become efficient, competitive and productive.

Local authority trading standards teams (LATS) investigate local scams and consumer problems which are too small for a full-scale investigation by the Competition and Markets Authority or another regulator.

In West Yorkshire, a recent operation between West Yorkshire Trading Standards and West Yorkshire Police targeting dealers of cheap and illicit tobacco resulted in a seizure of 125,000 cigarettes and 4.9kg of hand rolling tobacco.

But Mr Penrose wrote: "The problem is, LATS teams have been hollowed out in some – but by no means all – parts of the country by councils facing budget pressures.

Hide Ad
Hide Ad

"The number of trading standards officers has fallen steadily and almost half of all LATS do not believe that their team has sufficient skills to cover the full range of trading standards responsibilities."

He describes an enforcement gap with lots of cases unresolved, something which "will sap consumer trust and confidence in whether the system is working properly to protect them, and stop local economies from becoming efficient, competitive and productive too."

The MP calls for a new statutory duty for minimum standards in LATS teams, including powers to mount anti-trust and consumer investigations, and provide ring-fenced resources so they can deliver them well.

The Penrose Review, which comes out today, looks at how the current rules could change to "meet the government’s policy aims of promoting a dynamic, innovation-driven economy".

Hide Ad
Hide Ad

In the chapter about 'levelling up', he says there are only two countries in Europe with bigger regional variations in productivity than the UK.

And he adds: "Levelling up our economy outside the southeast depends on whether each part of the country has good local skills, transport links (whether for freight or commuting) and affordable real estate.

"If they have, then they will attract more competitive and successful exporting firms, creating a virtuous circle which attracts more high-skilled people to live and work in the area, boosting productivity, jobs and wages even further.

"But these aren’t the only things that matter: raising the local competitive temperature for all firms in every part of the country, particularly the ones that aren’t exposed to world class rivals in global export markets, will level up productivity and growth too.

Hide Ad
Hide Ad

"There’s plenty of evidence showing that stronger competition goes hand in hand with higher productivity as less-competitive firms have to step up or shut down.

"At its most basic, this means giving small firms and consumers quicker, easier, cheaper and more digital ways to enforce their rights when goods or services aren’t good enough, so poor-performing firms face more pressure, and so consumers know they can trust the system to be on their side if they need it."

Among Mr Penrose's recommendations is that small claims courts and alternative dispute resolution services should all become fully 24/7 to match the modern digital economy and "be as easy, cheap and simple as using an app on your phone".

And his report says the existing Competition Appeal Tribunal service for companies which deals with companies who feel unfairly treated by other businesses is too slow and expensive for many local firms.

Hide Ad
Hide Ad

He calls for new, cheap, efficient, fasttrack competition courts for local and regional cases with "very tight case management, a low cost cap for losing firms and a one or two-day maximum hearing length".

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.