Key facts
- Bank of England Governor Andrew Bailey expressed openness to simplifying and adjusting financial regulations.
- Bailey stated that regulators should not cap returns, as this is a matter of commercial strategy.
- He indicated that current regulations should help "flush out supranormal profits" by "reducing barriers to entry."
- Chancellor Rachel Reeves focused on fiscal credibility in her final Mansion House speech, mentioning it 11 times.
- Reeves avoided discussing taxes and Keir Starmer, emphasizing her personal achievements and commitment to fiscal rules.
Bank of England Governor Andrew Bailey has indicated a willingness to simplify the UK's financial rulebook, suggesting that regulations should be adjusted to help "flush out supranormal profits" by "reducing barriers to entry." Speaking at the Chancellor's final Mansion House speech, Bailey clarified that regulators should not cap returns, as this falls under commercial strategy for financial firms. He cautioned against simplistic calls for deregulation, describing them as "unhelpfully reductive," but affirmed that central banks are open to questioning the effectiveness of current red tape.
Meanwhile, outgoing Chancellor Rachel Reeves focused heavily on fiscal credibility in her valedictory speech to the City. She reportedly mentioned 'credibility' 11 times, urging her successor to adhere to her fiscal rules to maintain public trust and enable change. Reeves deliberately avoided discussing taxes, a sensitive topic given the significant tax hikes she oversaw, and instead recommitted to supporting regional control over business rates. In a notable shift from previous addresses, she also largely omitted mentions of Keir Starmer, using the personal pronoun 'I' extensively to claim credit for her successes. The Chancellor also sidestepped discussions on employment, as the UK's unemployment rate has risen to 4.9% and youth unemployment has surged to 16.2%.