Reeves: Cut regulations to help Britain grow

Their bosses said that the top five British banks could help the government achieve growth and prosperity if they were shielded from additional regulations.

HSBC, Lloyds, Santander, NatWest, Barclays and NatWest leaders called today for more “stability” and “predictability” in the regulatory framework for the banking sector. They said that this would provide the “certainty and resilience” for banks to help support growth.

Banking leaders have also put pressure on the regulators to meet their goals set by the previous government.

As part of its efforts to boost the UK economy, the Conservative government gave the Prudential Regulation Authority of the Bank of England and the Financial Conduct Authority the new goal to take competitiveness and growth into account when making rules. In recent months, regulators have been put under pressure to demonstrate that they are taking into consideration this.

Banks said that “industry, regulators and government should work together in order to achieve the ambitious goals of the government”.

The debate about rules and regulations can seem far removed from economic growth, but if the balance is right, then the prize will be real, they say, pointing out the benefits of a modernised infrastructure, more job opportunities, and a financial sector that can help the UK’s economy thrive.

The bank leaders’ unusually public call follows a meeting they had last week with Rachel Reeves.

In the information packet for delegates, HSBC Barclays and Lloyds, Octopus, TSL and M&G are listed as the official partners of this new government-sponsored investment summit.

There will be breakout sessions that are interactive with peers and ministers.

These will include topics such as: investment options arising from decarbonising our electricity grid, health tech and artificial intelligence in the UK, and how our unique data sets present an opportunity for revolutionising care; reflections on the world of uncertainty and the UK’s plan to reap stability dividend.

All sides are placing pressure on the UK government to shape the economy’s future. The budget and summit at the end this month will be a major factor.

The weekend saw 500 entrepreneurs write an open letter to the government asking them not to increase capital gains tax. They argued that this would discourage new start-ups. Victor Riparbelli was the CEO of Synthesia – a London-based AI unicorn – Giles Andrews is the co-founder and Alex Depledge is the founder of Resi – an architectural platform.

The message from the British bank chiefs comes at a crucial time for the UK’s economy. The government is aiming to have the fastest sustained growth in the G7 by the next elections.

Bank leaders say that an investment strategy based on long-term discipline is necessary to ensure the future growth and prosper of the country. They also call for greater investor confidence. This could be achieved by a more stable regulatory environment, with clearer long-term goals and increased certainty for investors.

The report also highlights the urgent need for the government, over the next 20 years, to raise between £40 billion and £50 billion annually in private capital to upgrade vital infrastructure.

The group applauded recent government initiatives, including reforms to streamline the planning process, a 10-year infrastructure strategy, and the appointment a Investment Minister. The group stressed that there was more to be done in order to encourage private investors to invest in ambitious, long-term projects.