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| Reeves unveils City strategy aimed at cutting red tape and fuelling UK growth | Reeves unveils City strategy aimed at cutting red tape and fuelling UK growth |
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| ‘Leeds Reforms’ include streamlined accountability for senior bankers and a campaign to get more consumers investing in stock market | ‘Leeds Reforms’ include streamlined accountability for senior bankers and a campaign to get more consumers investing in stock market |
| Business live – latest updates | Business live – latest updates |
| Rachel Reeves has unveiled a package of City changes meant to cut “unnecessary” red tape and encourage more financial risk-taking by companies and consumers in the hopes of spurring economic growth. | Rachel Reeves has unveiled a package of City changes meant to cut “unnecessary” red tape and encourage more financial risk-taking by companies and consumers in the hopes of spurring economic growth. |
| In a financial services strategy dubbed the Leeds Reforms, the chancellor outlined initiatives designed to boost the financial services sector, including plans to cut “unnecessary costs” related to accountability rules for senior bankers, and to launch an advertising campaign to get consumers investing cash savings in stocks. | In a financial services strategy dubbed the Leeds Reforms, the chancellor outlined initiatives designed to boost the financial services sector, including plans to cut “unnecessary costs” related to accountability rules for senior bankers, and to launch an advertising campaign to get consumers investing cash savings in stocks. |
| The UK government will review ringfencing rules – introduced after the 2008 financial crisis – that are meant to protect consumer cash from a bank’s riskier business activities. | The UK government will review ringfencing rules – introduced after the 2008 financial crisis – that are meant to protect consumer cash from a bank’s riskier business activities. |
| The independence of the Financial Ombudsman Service, which settles complaints between consumers and businesses, will also be watered down, while the rate of interest – and total compensation – that banks and other City firms have to pay to wronged consumers will be reduced. | The independence of the Financial Ombudsman Service, which settles complaints between consumers and businesses, will also be watered down, while the rate of interest – and total compensation – that banks and other City firms have to pay to wronged consumers will be reduced. |
| There will also be a review of risk warnings attached to investment products to ensure that people are “accurately” judging risk levels. | There will also be a review of risk warnings attached to investment products to ensure that people are “accurately” judging risk levels. |
| • Looser mortgage rules, which allow lenders to provide bigger mortgages worth more than 4.5 times borrowers' annual income. The move could help another 36,000 first-time buyers per year, according to the Bank of England | • Looser mortgage rules, which allow lenders to provide bigger mortgages worth more than 4.5 times borrowers' annual income. The move could help another 36,000 first-time buyers per year, according to the Bank of England |
| • A permanent government-backed mortgage guarantee scheme, in which taxpayers will pick up the bill when a borrower defaults, in an effort to encourage participating banks to offer more 91-95% mortgages | • A permanent government-backed mortgage guarantee scheme, in which taxpayers will pick up the bill when a borrower defaults, in an effort to encourage participating banks to offer more 91-95% mortgages |
| • A government-backed but industry-funded advertising campaign to encourage consumers to invest their cash savings in shares | • A government-backed but industry-funded advertising campaign to encourage consumers to invest their cash savings in shares |
| • Plans to allow banks to send information about “investment opportunities” to savers that have cash sitting in low interest rate accounts, encouraging them to shift money to stocks and shares | • Plans to allow banks to send information about “investment opportunities” to savers that have cash sitting in low interest rate accounts, encouraging them to shift money to stocks and shares |
| • A fresh review of ringfencing rules which were introduced after the 2008 financial crisis in order to protect consumer cash from a bank’s riskier activities | • A fresh review of ringfencing rules which were introduced after the 2008 financial crisis in order to protect consumer cash from a bank’s riskier activities |
| • A review of warnings attached to investment products to ensure that people are “accurately” judging risk levels | • A review of warnings attached to investment products to ensure that people are “accurately” judging risk levels |
| • Plans to “radically streamline” accountability rules for senior bankers and finance bosses | • Plans to “radically streamline” accountability rules for senior bankers and finance bosses |
| • Reining in the powers of the Financial Ombudsman Service, which settles complaints between consumers and businesses | • Reining in the powers of the Financial Ombudsman Service, which settles complaints between consumers and businesses |
| • Cutting the rate of interest – and therefore total compensation – paid out to consumers wronged by City firms and imposing a 10-year limit for claims | • Cutting the rate of interest – and therefore total compensation – paid out to consumers wronged by City firms and imposing a 10-year limit for claims |
| • A new “concierge service” to court international investors and create a one-stop-shop to promote the UK and provide tailored support to help businesses plan where to invest. | • A new “concierge service” to court international investors and create a one-stop-shop to promote the UK and provide tailored support to help businesses plan where to invest. |
| The measures were announced ahead of Reeves’s Mansion House speech, where she will address the most senior bosses from across the financial services sector at a dinner in London on Tuesday night. | The measures were announced ahead of Reeves’s Mansion House speech, where she will address the most senior bosses from across the financial services sector at a dinner in London on Tuesday night. |
| The chancellor is under pressure after official figures last week showed the economy shrank by 0.1% in May, and she is widely expected to have to raise taxes again in the autumn budget. | The chancellor is under pressure after official figures last week showed the economy shrank by 0.1% in May, and she is widely expected to have to raise taxes again in the autumn budget. |
| Business groups have blamed Reeves’s £25bn increase in employer national insurance contributions, which came into force in April, for weighing on growth, while Donald Trump’s trade war has sapped confidence. | Business groups have blamed Reeves’s £25bn increase in employer national insurance contributions, which came into force in April, for weighing on growth, while Donald Trump’s trade war has sapped confidence. |
| Reeves said in a statement on Tuesday morning: “We fixed the public finances and stabilised the economy. Now we need to double down on our global strengths to put the UK ahead in the global race for financial businesses, creating good, skilled jobs in every part of the country and helping savers’ money go further through our plan for change.” | Reeves said in a statement on Tuesday morning: “We fixed the public finances and stabilised the economy. Now we need to double down on our global strengths to put the UK ahead in the global race for financial businesses, creating good, skilled jobs in every part of the country and helping savers’ money go further through our plan for change.” |
| The Leeds Reforms were revealed during a summit with City bosses in West Yorkshire, including the Lloyds Banking Group chief executive, Charlie Nunn. | The Leeds Reforms were revealed during a summit with City bosses in West Yorkshire, including the Lloyds Banking Group chief executive, Charlie Nunn. |
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| The bosses of City regulators, who have been under pressure to cut regulatory burdens on UK firms, were also in attendance, including the Financial Conduct Authority’s chief executive, Nikhil Rathi, and the head of the Bank of England’s Prudential Regulation Authority, Sam Woods. | The bosses of City regulators, who have been under pressure to cut regulatory burdens on UK firms, were also in attendance, including the Financial Conduct Authority’s chief executive, Nikhil Rathi, and the head of the Bank of England’s Prudential Regulation Authority, Sam Woods. |
| The Treasury said the package of measures would ultimately “tear down the barriers” to investment while “reintroducing informed risk-taking into the system, cutting unnecessary red tape, driving more finance into public markets and actively helping international companies to set up in the UK”. | The Treasury said the package of measures would ultimately “tear down the barriers” to investment while “reintroducing informed risk-taking into the system, cutting unnecessary red tape, driving more finance into public markets and actively helping international companies to set up in the UK”. |
| Together, the measures are intended to make the UK the “number one” hub for financial services firms by 2035, with the Labour government saying it will help attract inward investment. | Together, the measures are intended to make the UK the “number one” hub for financial services firms by 2035, with the Labour government saying it will help attract inward investment. |
| This article was amended on 16 July 2025. An earlier version said Rachel Reeves would give her Mansion House address at the Guildhall; however, it was at Mansion House itself. |