Labour unveils ambitious plan to boost financial services as part of drive for growth
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Shadow Chancellor Rachel Reeves has announced ambitious proposals
to drive competitiveness, streamline regulations and
unlock billions of pounds of growth in financial
services. The party’s new plan for financial services will
include a commitment to modernise the regulatory burden
on the industry that can obstruct competitiveness and growth,
including the Financial Conduct Authority’s 10,000 page regulatory
handbook. Under the...Request free
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Shadow Chancellor Rachel Reeves has announced ambitious proposals to drive competitiveness, streamline regulations and unlock billions of pounds of growth in financial services. The party’s new plan for financial services will include a commitment to modernise the regulatory burden on the industry that can obstruct competitiveness and growth, including the Financial Conduct Authority’s 10,000 page regulatory handbook. Under the proposals, the financial watchdog will be called on to work with industry to identify outdated and prescriptive rules that have been made redundant to give firms more freedoms to innovate and grow. The next Labour government will also look to tackle bureaucracy, overlap and inefficiencies across the industry’s different regulators. The publication of the plan follows a review of financial services led by the Shadow City Minister Tulip Siddiq alongside an independent advisory panel of experts from the sector, including Sir Douglas Flint, chair of Abrdn and Sir John Kingman, chair of Legal & General Group. The financial services industry is one of Britain’s greatest assets. Labour’s plan will promise to build on this success, unlock investment and drive growth. Other proposals in the plan include: Bolstering the growth of regional financial centres alongside established hubs in London and Edinburgh and unlocking the full potential of the mutuals sector.
Increasing financial security for consumers, including exploring
the expansion of longer-term fixed rate mortgages, adopting a
coordinated cross-sectoral approach to fraud prevention, creating
a national financial inclusion strategy, and regulating the Buy
Now Pay Later sector. The publication follows a meeting hosted by TheCityUK of Reeves, Siddiq, the Mayor of London and representatives of the advisory panel. Speaking ahead of the plan’s publication, Rachel Reeves, Labour’s Shadow Chancellor of Exchequer, said: “The financial services industry is one of Britain’s greatest assets, supporting millions of jobs and billions of pounds of investment to our shores. However, too often in the last decade British politicians have sounded embarrassed about the sectors we excel in. That will change with Labour. “The next Labour government will unashamedly champion the UK’s financial services sector. We will work in partnership with business to kick down the barriers to growth, spur on investment and showcase Britain’s standing as a world leader in the industry.” Tulip Siddiq, Labour’s Shadow City Minister, said: “Our plan to streamline financial services regulation and smash obstacles to the UK’s competitiveness will unleash the full potential of the financial services sector to drive growth and create jobs in every part of the country.” Nigel Higgins, Chair of Barclays, said: “A vibrant and dynamic financial services sector is crucial for long-term economic growth. This report recognises this fact and helps to join up some of the interconnected issues, challenges and opportunities within the sector, including recognising the importance of international competitiveness.” Charles Randell, Member of the Financial Inclusion Commission and former Chair of the Financial Conduct Authority, said: “Labour has provided its blueprint for the inclusive and sustainable growth of the financial sector: independent institutions, stable and proportionate regulation, a more constructive approach to our international partners, a plan to better harness the power of UK savings and pensions, and a National Financial Inclusion Strategy to ensure people across the UK will benefit whatever their means. I’m delighted to have worked with Labour on this review.” Ends Notes to editors Click here to read Financing Growth: Labour’s plan for financial services The members of the panel, who are acting in an independent advisory only capacity, are: Susan Allen, Chief Executive Officer of Yorkshire Building Society Dame Elizabeth Corley, Chair of Schroders and Impact Investing Institute Sir Douglas Flint, Chair of abrdn, IP Group, and UK Digitisation Taskforce Nigel Higgins, Group Chair of Barclays Anne Glover, Chief Executive and Co-Founder of Amadeus Capital Partners Sir Ron Kalifa, Senior Independent Director, Bank of England and author of Kalifa Review of UK Fintech Sir John Kingman, Chair of Legal & General Group Charles Randell, Member of the Financial Inclusion Commission and former Chair of the Financial Conduct Authority David Schwimmer, Chief Executive of London Stock Exchange Group Shriti Vadera, Chair of Prudential The UK’s financial services sector is one of the key drivers of growth for the economy. A future Labour government will work in partnership with the sector to reinforce the UK’s role as a global financial centre and ensure the UK remains world-leading in sustainable finance and fintech. The Financial Services Review Advisory Panel is separate from the British Infrastructure Council. Labour undertook its financial services review to present its vision for the sector and lay out its policy priorities for financial services to drive growth throughout the whole of the country and enable the UK’s transition to net zero. The review covered five key thematic areas: capital markets, competitiveness, consumer protection, innovation, and sustainability. Labour is being supported by Oliver Wyman for the review. |