UK Chancellor Says Red Tape is Constraining Business

In her speech at the Mansion House dinner last week, UK Chancellor of the Exchequer Rachel Reeves called for bold regulatory reform, warning that regulation continues to act as a “boot on the neck” of UK businesses and risks “choking off” innovation, as reported by The Guardian.

Reeves urged regulators to avoid “excessive caution” and to “boldly regulate for growth.” The speech followed the launch of the Leeds Reforms, a financial strategy aimed at deregulation and encouraging more risk-taking. The reforms include plans to ease banker accountability rules, review ring-fencing regulations, and loosen mortgage rules to allow lenders to offer larger loans.

Reeves also introduced a government-backed mortgage guarantee scheme and a public campaign to promote investing, modeled after the 1986 “Tell Sid” ads. Banks will be allowed to send savers investment prompts, while risk warnings on products may be revised. At the same time, the Treasury will limit the powers of the Financial Ombudsman Service, imposing a 10-year claim window and lowering compensation interest.