RISKY BUSINESS
Rachel Reeves to tell City bosses its time to rip up financial red tape in dash for growth
UK status as global financial centre can't be taken for granted
RACHEL Reeves pledges to rip up financial red tape to let City bosses take more risks to help grow the economy.
The Chancellor insists measures brought in following the 2008 economic crash have “gone too far” and are holding Britain back.
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She will use her first Mansion House speech tonight to say that the moves have had “unintended consequences” putting the brakes on growth.
Ms Reeves will announce a package of measures aimed at driving up competition across the financial services.
She has written to regulators such as the Financial Conduct Authority to ensure a greater focus is levelled on supporting economic growth.
Big business bosses will be told that the UK’s status as a global financial centre can’t be taken for granted with competition from Frankfurt and New York.
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She will hail the City as the “crown jewel” of the UK’s economy which employs 1.2 million people across the country.
The Chancellor will say: “While it was right that successive governments made regulatory changes after the Global Financial Crisis, to ensure that regulation kept pace with the global economy of the time, it is important that we learn the lessons of the past.
“These changes have resulted in a system which sought to eliminate risk taking.
"That has gone too far and, in places, it has had unintended consequences which we must now address.”
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The speech will also unveil her plans for pension “megafunds” which will see around £80 billion invested in business and infrastructure.
Tech and telecom firms sectors are also being called upon to go further and faster in reducing the scale of fraud taking place on their platforms and networks.
A progress update of an expanded fraud strategy by March 2025 has also been requested.
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