Chancellor Reeves Plans Regulatory Rollback to Boost UK Financial Growth

Chancellor Rachel Reeves unveiled the Leeds Reforms, a major overhaul of financial services regulation aimed at cutting red tape to boost economic growth and innovation. She criticized current regulations as a "boot on the neck" of businesses, particularly targeting the Senior Managers Certification Regime and consumer redress systems, which critics argue will weaken protections established after the 2008 financial crisis. The government plans to ease mortgage lending rules and allow banks to promote stocks and bonds to ordinary investors, encouraging more people to invest and increase household wealth. Reeves emphasized that the reforms are intended to promote growth across all sectors, putting more money into the pockets of working people, while urging regulators to avoid excessive caution and prioritize economic prosperity. However, groups like the Transparency Task Force warn that these changes risk regulatory capture, favoring industry profits over market stability and consumer protections. Despite concerns, Reeves framed the reforms as bold steps to revitalize Britain’s financial services sector and support broader economic renewal.