Rachel Reeves, the Chancellor, will address the City tonight with a promise to relax banking regulations that were put in place after the 2008 financial crisis. She aims to rebuild trust with the financial sector by easing these restrictions.
Reeves plans to unveil a strategy that aims to boost growth and competitiveness in the financial services sector. This move comes after her recent Budget announcement, which included significant spending increases and tax hikes. However, her budget has faced criticism from various sectors, including businesses, farmers, and trade unions.
The Chancellor’s speech will emphasize the importance of balancing risk reduction with economic growth. She believes that the UK’s status as a global financial center needs to be maintained by fostering innovation and investment opportunities in businesses, infrastructure, and clean energy.
One of Reeves’ key proposals is the creation of pension megafunds, which will consolidate existing pension pots into a few large funds managed by professionals. This initiative is expected to unlock around £80 billion in new investments for UK businesses and infrastructure.
As Reeves aims to reset her relationship with the City, a new controversy has emerged regarding the impact of the government’s new inheritance tax rules on farms. While the Treasury claims that only 28% of farms will be affected, farmers’ groups argue that up to 66% could face the tax burden. The discrepancy in figures has sparked calls for an urgent investigation.
Overall, Rachel Reeves’ speech at Mansion House reflects her commitment to promoting economic growth while addressing the concerns of the financial sector. By easing banking regulations and introducing new growth strategies, she hopes to create a more competitive and dynamic environment for the UK’s financial services industry.
