We need to regulate for growth, not just for risk
In her Mansion House speech, the Chancellor did not shy away from the need to deliver reform to support financial services to innovate, grow and finance investment across Britain, says Tulip Siddiq
Financial services are at the heart of our economy, employing 1.2m people – from London to Edinburgh, from Manchester to Belfast.
The sector is highly productive and world-leading in more ways than one. But we cannot take that position for granted.
When the Chancellor delivered her first Mansion House speech, she did not shy away from the need to deliver reform to support financial services to innovate, grow and finance investment across Britain.
That starts with the first ever financial services sector growth and competitiveness strategy next spring – with industry voices at the heart of shaping it.
It also means a rebalanced approach to regulation. While we will always uphold high standards, we need to change the system that seeks to eliminate risk taking and holds back growth. We need to regulate for growth, not just for risk.
Britain is a place to do business
To ensure growth is hardwired into the culture of the regulators we have sent new growth-focused remits – which will help ensure Britain is a place to do business.
Our markets are among the world’s deepest and most liquid, and the UK continues to lead Europe as an investment hub. In the year to date, London raised more capital than the next three largest European exchanges combined – a testament to the trust and opportunity found here.
In the year to date, London raised more capital than the next three largest European exchanges combined – a testament to the trust and opportunity found here
But we need to go further to reinvigorate our capital markets. Initiatives like the pensions review, listing regime changes, bank capital reforms, and the upcoming financial services growth and competitiveness strategy highlight our commitment to balanced regulation that fosters growth while protecting market integrity. We’re already seeing results, with recent IPOs and secondary listings like protein shake start-up Applied Nutrition and broadcasting giant Canal+ underscoring confidence in UK capital markets.
The next steps on Pisces, revealed exclusively in Morning Wire this week, add another element to this. A world-first UK market for trading private company shares, blending features of private and public markets to help businesses scale.
Pisces will open vital investment pathways, empowering UK businesses to grow, innovate, and attract talent from around the world, cementing our position as a global financial leader.
After the Budget fixed the foundations of the economy, these changes will strengthen our capital markets and make every part of Britain better off.
Tulip Siddiq is the economic secretary to the treasury and City Minister