The British finance minister, Rachel Reeves, promised on Tuesday, July 15 at Banks and Markets to deregulate the sector to try to breathe with the British economy and attract foreign companies.
The Chancellor of the Echiquier, from his official title, must speak on Tuesday night during a speech highly anticipated by the financial circles in Mansion House, the official residence of the Lord-Mayor of the city of London, the powerful British financial center.
His position is not new: Rachel Reeves had already said last November, in his first “speech of the mansion house”, wanting to promote the risk of taking risks in financial services in the United Kingdom, judging that the financial regulations after the crisis “were going too far” and saw growth.
The “reads” reforms that are announced on Tuesday go in the same direction.
The Government intends to create a dedicated service to “actively cut international financial services companies”, according to the press release, with the aim of becoming “the number one of the financial services companies by 2035”.
Difficult budget context
The Treasury and the regulators of the sector launched several other reform projects on Tuesday, destined to authorize banks to provide people for a purchase of real estate, with equivalent income, simplify the rules of introduction in the stock market or even soften the responsibility regime for high managers.
London also wants to reform the rules that separate retail and investment activities within a bank (“ring fences” or partition).
And the Bank of England announced a postponement of one year, to 2028, new rules hardening the capital requirements of the banks.
Mrs. Reeves is under pressure to balance the accounts of the United Kingdom, after several expensive reversions of the Government of Prime Minister Keir Starmer, who canceled the cups in social assistance after a deep of its own work.
Many economists believe that Mrs. Reeves, who has promised a discipline of “iron” in public finances, will have no choice but to increase taxes in the next budget in autumn.
If the chancellor’s ads applauded on Tuesday through the city, finance professionals also fear choosing to point to the richest banks or taxpayers.
Source: BFM TV
