{"id":161,"date":"2025-07-13T13:38:49","date_gmt":"2025-07-13T13:38:49","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=161"},"modified":"2025-07-13T13:38:49","modified_gmt":"2025-07-13T13:38:49","slug":"rachel-reeves-to-hail-fiscal-stability-and-city-risk-taking-in-mansion-house-speech","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=161","title":{"rendered":"Rachel Reeves to hail fiscal \u2018stability\u2019 and City risk-taking in Mansion House speech"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=181aad17-f0f3-4883-879c-36e07f3828ba\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Chancellor Rachel Reeves will on Tuesday set out a vision for Britain\u2019s financial services industry based on sound public finances and a regulatory system geared towards growth rather than eliminating risk.<\/p>\n<p>Reeves will tell City of London grandees in her Mansion House speech that she will not put at risk Britain\u2019s economic \u201cstability\u201d, in spite of pressure from some Labour MPs for higher public spending and looser fiscal rules.<\/p>\n<p>An ally of the chancellor said she would announce plans to tear up \u201creams of financial red tape\u201d and that she would be \u201cruthless in slashing rules that make the UK uncompetitive\u201d.<\/p>\n<p>People briefed on the speech said she would accelerate reforms to the \u201csenior managers\u2019 regime\u201d, accountability rules introduced after the 2008 financial crash that the City has complained are too onerous.<\/p>\n<p>After a damaging few weeks for Reeves in which she was forced to abandon \u00a36.25bn of welfare savings by rebellious Labour MPs, the chancellor will insist she has a grip on the economy and will not let borrowing run out of control.<\/p>\n<p>\u201cShe will highlight how the government has restored stability as a vital precondition to shaping the economy of tomorrow, supporting four interest rate cuts to drive down mortgage and business lending costs,\u201d the ally of Reeves said.<\/p>\n<p>However, many in the City of London fear that Reeves will attempt to fill a growing hole in her fiscal plans by increasing taxes on the financial services sector \u2014 such as an increase in the bank levy \u2014 or on the wealthy.<\/p>\n<p>Polling by Survation last month found that 64 per cent of Labour MPs said Reeves\u2019 fiscal rules inhibited ministers\u2019 abilities to meet their objectives, including raising living standards and improving public services.<\/p>\n<p>Reeves has insisted the rules, most critically a pledge to fund day-to-day spending only with tax receipts by 2029-30, are vital for maintaining market confidence and keeping debt interest under control.<\/p>\n<p>Bond yields spiked at the sight of Reeves crying in the House of Commons earlier this month, amid concerns she might be about to leave the Treasury. Markets feared that a new Labour chancellor would take a looser fiscal approach.<\/p>\n<p>Reeves\u2019 speech will be a significant moment as she seeks to reassert her authority, while at the same time reassuring her audience that she will honour her promise to change Britain\u2019s regulatory culture so it \u201cregulates for growth\u201d, not just for risk.<\/p>\n<p>The senior managers\u2019 regime has since 2016 forced senior executives at banks, building societies and credit unions to take personal responsibility for infractions if they have not taken \u201creasonable steps\u201d to prevent them.<\/p>\n<p>Penalties range from fines to bans. UK Finance, which represents 300 companies in the sector, has warned that the regime captured \u201clarge swaths of people and compliance has become quite burdensome\u201d.<\/p>\n<p>Reeves will set out plans to cut the burden of the senior managers\u2019 and certification regime, which covers almost 140,000 finance professionals, by half, empowering regulators to put in place a more \u201cproportionate\u201d regime.\u00a0<\/p>\n<p>She will also propose making senior management appointments easier, reducing timelines for review by regulators from three to two months and removing pre-approvals for about 4 per cent on average in banks and insurers, Treasury officials said.<\/p>\n<p>Financial services is one of eight \u201cgrowth\u201d sectors identified in the government\u2019s new industrial strategy and Reeves will set out proposals to help it take on growing international competition.<\/p>\n<p>Reeves\u2019 failure to push through reforms to winter fuel payments and sickness and disability benefits has shaken confidence in the Treasury.\u00a0<\/p>\n<p>The chancellor has been forced to drop from her Mansion House speech plans to limit cash ISAs, an idea intended to shift savings into stocks, after a backlash from building societies and consumer champions.<\/p>\n<\/div>\n<p>#Rachel #Reeves #hail #fiscal #stability #City #risktaking #Mansion #House #speech<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Chancellor Rachel Reeves will on Tuesday set out a vision for Britain\u2019s financial services industry based on sound public finances and a regulatory system geared towards growth rather than eliminating risk. Reeves will tell City [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":162,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[173,171,170,176,175,168,169,174,177,172],"class_list":{"0":"post-161","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-city","9":"tag-fiscal","10":"tag-hail","11":"tag-house","12":"tag-mansion","13":"tag-rachel","14":"tag-reeves","15":"tag-risktaking","16":"tag-speech","17":"tag-stability"},"_links":{"self":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=161"}],"version-history":[{"count":0,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/media\/162"}],"wp:attachment":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}