Post-Brexit 'big bang for the City': Jeremy Hunt unveils biggest banking reforms for 30 years

9 December 2022, 09:38

Chancellor Jeremy Hunt unveils new 'big bang' reforms for 30 years
Chancellor Jeremy Hunt unveils new 'big bang' reforms for 30 years. Picture: Alamy

By Stephen Rigley

Jeremy Hunt has unveiled a post-Brexit 'big bang' for financial sector in a bid to boost growth.

In what has been described as the biggest overhaul of financial regulations for more than 30 years, the government says the package of more than 30 reforms will "cut red tape" and "turbocharge growth".

On a visit to Scotland, the Chancellor declared that EU red tape will be slashed and credit crunch-era rules loosened to unlock £100billion of investment in the UK economy.

The 'Edinburgh reforms' are designed to bolster the capital's status as the pre-eminent financial centre in Europe - which has been dealt a blow over recent years.

The package has echoes of Margaret Thatcher's 'big bang' deregulation during the 1980s and will loosen banking rules introduced after the 2008 financial crisis, which saw some UK banks face potential collapse.

The government has already announced it will scrap a cap on bankers' bonuses and allow insurance companies to invest in long-term assets such as housing and windfarms to boost investment and help its levelling up agenda.

There is a commitment to make 'substantial legislative progress' on repealing and replacing the Solvency II directive next year, which the Treasury believes will free up more than £100billion of private investment.

Mr Hunt also promised to reform the UK prospectus regime to support stock market listings and capital raises, reforming rules on real estate investment trusts and reviewing provisions on investment research in the UK.

Bank of England
Bank of England. Picture: Alamy

Read More: Royal Mail Christmas strikes begin and letters pile up as 115,000 workers walk out in row over pay

Read More: Killer and rapist would leave jail without signing sex offenders' register due to legal loophole

Mr Hunt also promised to reform the UK prospectus regime to support stock market listings and capital raises, reforming rules on real estate investment trusts and reviewing provisions on investment research in the UK.

Mr Hunt said: "We are committed to securing the UK's status as one of the most open, dynamic and competitive financial services hubs in the world.

"The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.

"And we will go further – delivering reform of burdensome EU laws that choke off growth in other industries such as digital technology and life sciences."

More Latest News

See more More Latest News

The fire broke out at the Chiltern Firehouse

Fire engulfs celebrity haunt Chiltern Firehouse as 100 evacuated from luxury hotel

Trump confirms he will meet Starmer in Washington 'in the next few weeks'

Trump to meet with Starmer in Washington 'in the next few weeks' - as JD Vance slams Europe in fiery speech

Both Meghan and Kate shared Valentine's pictures

Harry and Meghan share sweet Valentine's photo after William and Kate also post romantic picture

Jaden Sheriff.

Man found guilty of killing ex-girlfriend's neighbour over 'blue balls', sentenced to life imprisonment

The woman was attacked by a shark

Horror as woman loses both hands after being mauled by shark as husband desperately fights it off

United States Vice-President JD Vance, second right, meets with Ukraine's President Volodymyr Zelenskyy, third left, during a bilateral meeting on the sidelines of the Munich Security Conference in Munich

'Putin is a liar': Zelenskyy's warning to Trump as Ukraine's leader voices concern over 'risky' phone calls with Russia

Addenbrookes hospital, Cambridge

Children's surgeon suspended after nine operations fall 'below standards' in Cambridge

Lesley Joseph refuses to discuss Pauline Quirke's dementia diagnosis.

'I won't talk about her at the moment': Lesley Joseph refuses to discuss Pauline Quirke's dementia diagnosis

Ada Bikakci

Girl, 9, killed after being hit by London bus, as driver charged with driving while drunk or on drugs

Exclusive
A small group of secondary school pupils working on practical experiments in a chemistry lab.

Ministers should consider shortening school holidays and letting teachers work from home, union chief says

JD Vance

Free speech is 'in retreat' across Europe, claims JD Vance - as US brands it a 'bigger threat than Russia'

oxford street with shoppers

Two arrested in Oxford St 'celebrity romance scam' after victims coerced into sending £200k to 'well-known boyfriends'

What if Ukraine were the UK? Could you accept surrendering a fifth of our country to Putin after so much sacrifice?

What if Ukraine were the UK? Could you accept surrendering a fifth of our country to Putin after so much sacrifice?

Most expensive pint revealed.

Most expensive pint in UK pubs revealed

One of the UK's 'most wanted' men sentenced to 12 years in prison after drug dealer evaded police for four years

One of the UK's 'most wanted' fugitives jailed for 12 years after drug dealer hunted down by police in Portugal

Anne Hodgson, 87, and Olwyn Smith, 82, with Dreamboy Max Hunter

Care home residents 'delighted' at male stripper visit