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Reeves announces new plans to deregulate UK economy

Chancellor unveils substantial financial services reforms aimed at boosting growth.

July 15, 2025 at 05:05 PM

Reeves pledges to extend purge of City red tape to rest of UK economy

Chancellor's speech emphasizes a shift toward risk-taking in financial regulations.

Reeves promises to reduce City red tape across UK economy

Rachel Reeves, the Chancellor of the Exchequer, announced plans to extend cuts in financial regulations beyond the City of London. Speaking at the Mansion House, she criticized excessive regulatory caution as detrimental to business growth. Reeves claimed these changes, touted as the largest reduction in a decade, aim to foster a more risk-friendly environment. Such measures include reforming rules that require banks to separate retail from investment activities and relaxing reporting obligations. The Chancellor emphasized that Britain must embrace risk for economic benefits, despite facing scrutiny over these decisions amid a tightening fiscal landscape.

Key Takeaways

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Reeves aims to reduce red tape for businesses to boost growth.

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Planned financial reforms include deregulating banks and capital requirements.

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Her commitment to risk-taking raises questions about economic stability.

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Public reaction is mixed as analysts express skepticism about her plans.

"It is bad for businesses, bad for growth and bad for working people."

Reeves highlights the consequences of excessive regulatory caution on the economy.

"The same flawed judgment has seen newts and bats block major infrastructure projects."

Reeves criticizes outdated regulations hampering business development.

"Growth should be the number one mission, but it doesn’t feel like a radical change."

Helen Miller critiques Labour's efforts in delivering effective reforms for growth.

"We have reasons to worry about the level of public debt in the UK given exposure to economic shocks."

Richard Hughes points out the risks associated with increasing public debt.

Reeves' approach reflects a notable shift in policy prioritization, signaling a potential cultural transformation in how risks are perceived in financial sectors. Her focus on deregulation aims to stimulate growth, yet analysts have raised concerns about the implications of such changes on consumer protection and long-term stability. The challenge remains whether this strategy will effectively revive the economy, especially as national debt continues to rise and public sentiment is mixed. Critics fear that while risk-taking can drive innovation, it may also increase vulnerabilities in an already strained economic environment.