The move comes a day after the watchdog opened a probe into Aviva’s £3.6bn takeover of Direct Line to study if it weakens competition in the insurance market. 

The government says the move aims to “create a level-playing field for businesses through more transparent, timely and responsive regulation”, while “ensuring regulators drive investor confidence and support economic growth across the UK”. 

It adds that the new plan “is focused on minimising uncertainty for businesses by encouraging the CMA to be proactive, transparent, timely, predictable and responsive in its engagement”. 

The government first issued a consultation on its ‘strategic steer’ for the CMA in February, with the new guidelines coming into force today. 

Chancellor Rachel Reeves adds: “Competitive markets are more important than ever for attracting investment into the UK and driving economic growth, and our new strategic steer for the CMA will help us achieve these goals, making Britain the best country to do business.” 

Business Secretary Jonathan Reynolds adds: “This government believes in promoting and protecting competition – that is fundamental to our growth mission and Britain’s modern industrial strategy.  

“Our economic regulators are crucial to creating the conditions for increased growth and investment.  

“This steer sets out the government’s priorities for the CMA.” 

The regulator, ahead of its reset, in February, published a Merger Charter that promised to speed up its investigations and focus on — pace, predictability, proportionality and process. 

The measures include that by June the body will cut the pre-notification phase of its probes within 40 working days, against a current average of 65. 

And reduce the current target for straightforward Phase 1 cases to 25 working days from 35. 

CMA chief executive Sarah Cardell (pictured) says: “The strategic steer reinforces the importance of a strong, independent competition and consumer protection regime, whilst situating this squarely in the context of the growth mission. 

“The steer provides helpful clarity on how the CMA should prioritise and go about our work, promoting competition and protecting consumers with a sharp focus on supporting higher levels of investment and economic growth.” 

Yesterday, the watchdog opened an investigation into Aviva’s agreed takeover of Direct Line to assess whether the move will lead to a “substantial lessening of competition” across the insurance market.   

The watchdog’s handling of the case will be judged against its new reset. 

The regulator has 40 days in its phase 1 investigation to evaluate the deal’s possible impact on competition in the sector.  

It has set a 10 July deadline, at which point the regulator will either give the merger the green light, or, proceed to a more in-depth phase 2 investigation. 

In January, former Amazon UK head Doug Gurr was appointed as interim chair of the competitions body unexpectedly replacing Marcus Bokkerink, as the government pushes ahead with its drive to cut red tape.