Chancellor Rachel Reeves to rip up red tape as regulation 'gone too far'

The Chancellor utilized her archetypal Mansion House code to accidental that measures brought successful since the finacial situation successful 2008 to 'eliminate risk' person had 'unintended consequences' successful holding backmost growth

Rachel Reeves has promised a large overhaul of fiscal regulations successful a cardinal speech, arguing that the regulatory changes implemented aft the 2008 economical clang person "gone excessively far".

In her archetypal Mansion House address, the Chancellor argued that measures introduced post-crisis to "eliminate risk" person unintentionally stifled growth.

Speaking successful the City of London, Ms Reeves unveiled a bid of reforms designed to stimulate contention wrong the fiscal services sector. This includes issuing "growth-focused remit letters" to regulators and revamping the user redress strategy to supply clearer compensation expectations for customers and firms, according to the Treasury.

The Chancellor has written to the Financial Conduct Authority, Prudential Regulation Committee, Financial Policy Committee and Payment Systems Regulator, urging them to prioritise growth. She besides announced plans for pension "megafunds", which could make astir £80bn for concern successful businesses and infrastructure.

Describing the fiscal services assemblage arsenic "the crown jewel successful our economy" and "a planetary occurrence story: we are the 2nd exporter of fiscal services successful the G7", the Chancellor warned against complacency. "But we cannot instrumentality the UK’s presumption arsenic a planetary fiscal centre for granted," she volition caution.

"In a highly competitory world we request to gain that presumption and we request to enactment to support it.

"While it was close that successive governments made regulatory changes aft the planetary fiscal situation to guarantee that regularisation kept gait with the planetary system of the time, it is important that we larn the lessons of the past."

"These changes person resulted successful a strategy which sought to destruct risk-taking. That has gone excessively acold and, successful places, it has had unintended consequences which we indispensable present address."

The Treasury has responded by stating that "high regulatory standards volition beryllium maintained" but parts of the strategy volition beryllium "rebalanced to thrust economical maturation and competitiveness". Ms Reeves revealed plans to "modernise" the Financial Ombudsman Service, which handles complaints betwixt consumers and firms, arsenic portion of this overhaul.

In addition, a aviator strategy volition beryllium launched to present "digital gilts" – tokenised Government bonds issued connected a blockchain – successful an effort to amended clasp technology. The Government volition besides see replacing the certification regime, which aims to bolster marketplace integrity and applies to unit beneath elder absorption level, with a much "proportionate" attack that reduces costs truthful firms tin "focus connected growth", according to the Treasury.

The Chancellor, Home Secretary and Technology Secretary person besides penned letters to tech and telecommunication sectors demanding stronger enactment to trim the standard of fraud occurring connected their platforms and networks. They person requested a advancement update by March 2025 up of an expanded fraud strategy.

Ms Reeves pledged that the Government volition people its inaugural Financial Services Growth and Competitiveness Strategy successful the spring, aimed astatine providing enduring certainty for the sector. She plans to ore connected 5 cardinal areas wrong fiscal services to capitalise connected the UK's existing strengths and heighten maturation potential.

These areas see fiscal technology, sustainable finance, plus absorption and wholesale services, security and reinsurance, and superior markets.