The UK government has unveiled a new strategy focused on boosting the country’s financial services sector by removing regulatory barriers and encouraging more investment. Announced by Chancellor Rachel Reeves, the Leeds Reforms include changes to senior banker accountability rules and efforts to reduce costs for businesses. The plan is designed to drive more financial activity in the UK and encourage investment in public markets.
The reforms include a review of ringfencing rules, which were introduced after the 2008 financial crisis to protect consumers from riskier bank activities. Other measures include lowering compensation rates and interest payments from banks to consumers, as well as adjusting the independence of the Financial Ombudsman Service, which resolves disputes between consumers and financial institutions.
Additionally, the government plans to review investment risk warnings to ensure consumers have a clearer understanding of potential risks. This initiative is part of a broader push to position the UK as a prime location for international financial businesses, with the goal of creating skilled jobs across the country.
The government’s announcement comes amid concerns over economic stagnation, with official figures showing a slight contraction in May. Despite challenges, the Leeds Reforms aim to boost competitiveness and attract foreign investment, with a target of making the UK the global leader in financial services by 2035.
