Hunt to present changes to City rules in bid to make London more competitive
Various media report this morning that Chancellor Jeremy Hunt will later this week unveil a package of financial reforms to relax regulation in the City in a bid to make London more competitive.
The measures are likely to include easing the ring-fencing rules on Britain’s biggest banks, which were imposed following the 2008 financial crisis, according to Sky News.
A Treasury source did not deny the reports and confirmed Mr Hunt will be setting out a financial services reform package this week.
Deregulatory changes were also explored by Mr Hunt’s predecessor, Kwasi Kwarteng, during his short tenure in the role.
Big Bang 2.0
Dubbed a Big Bang 2.0 – a reference to Margaret Thatcher’s 1986 policies which kicked off a massive change in the City – Mr Kwateng said the measures under consideration were a “top priority” for him.
“We need to get the City and the UK back to where it always has been – the world’s foremost financial centre,” he said in September.
“There’s lots we can do in the financial services space to liberalise regulations that will drive economic growth.”
Mr Hunt has already pledged to reform Solvency II, referring to the multi-trillion pound insurance sector, which will ease capital rules for the industry.
A Treasury spokesperson said: “We are commCityitted to delivering ambitious reform of the UK financial services sector, ensuring that it continues to be one of the most open, well-regulated and technology advanced markets in the world.
“We will set out further detail in due course.”