The Competition and Markets Authority will begin work next year, replacing the Office of Fair Trading and the Competition Commission.
And according to analysis from Pinsent Masons, a 31 per cent hike in resources should double the amount of investigations it can carry out.
The agency will get a £16m budget increase in 2015-16, upping its funding from the annual £52m now.
“In recent years the OFT has been criticised over its track record of competition enforcement. But that has been in the context of a spending review which reduced the OFT’s operating budget by 25 per cent over the four years to 2014-15,” said lawyer Guy Lougher.
“With an additional £16m, the CMA will have better capacity to track down and pursue businesses that have broken the law, as well as creating a competition regime that protects both consumers and businesses.”