The financial services sector is set to play a key role in designing the first Financial Services Growth and Competitiveness Strategy, which is set to be published in Spring, Chancellor Rachel Reeves reveals.
The Chancellor will host a series of industry forums to gather views about the best way to deliver long-term in the sector and across the country.
The strategy aims to develop policies that foster growth in the financial services sector, as part of the Plan for Change.
Financial services has been identified as one of the eight key growth-driving sectors in the government’s Modern Industrial Strategy.
The industry forums, alongside other engagement at official and ministerial levels, will ensure that industry and senior stakeholders are closely involved in the development of the upcoming strategy.
Over the coming weeks, the Chancellor and the Economic Secretary will chair the first of the industry forums bringing in leaders from retail banking, wholesale and international banking, insurance and reinsurance, asset management, fintech, and the mutuals and co-operatives sector.
These sessions will build on the government’s call for evidence to inform the strategy, which closed in December 2024.
Reeves states: “Growth is my number one mission. It’s the only way to put more money in people’s pockets and key to our Plan for Change.”
“The financial services sector is at the heart of this mission, supporting economic activity and financing investment across the country.”
“I am committed to working hand-in-hand with the industry to make sure that our plans are informed by those who both provide and utilise financial services, including those who know first-hand what is needed to unlock growth in, and drive prosperity through, our world-leading financial services sector.”
Last week, the Financial Conduct Authority released a letter to Prime minister Keir Starmer and the Chancellor, which said it wanted to “collaborate with you in a fundamentally different way to support the growth mission”.
On home loans, the City watchdog’s chief executive Nikhil Rathi stated it would “begin simplifying responsible lending and advice rules for mortgages, supporting home ownership and opening a discussion on the balance between access to lending and levels of defaults”.
He added the body would also “consult on removing maturing interest-only mortgage and other outdated guidance” and “work with government to remove overlapping standards” such as the Mortgage Charter.