Britain's new government under Prime Minister Andy Burnham is expected to maintain the previous administration's pro-growth agenda for the financial services sector, signalling continuity in
efforts to strengthen the City of London, according to a source familiar with the plans.
The source said ministers intend to continue implementing the Financial Services Growth and Competitiveness Strategy introduced under former Prime Minister Keir Starmer's government, while also pressing ahead with financial services reform legislation currently progressing through Parliament.
The approach suggests the new administration will preserve policies aimed at making the UK financial sector more competitive while encouraging economic growth.
New Chancellor John Healey has also retained several Treasury ministers who served under his predecessor, Rachel Reeves, a move the source described as evidence that the government does not intend to alter its direction on financial services policy.
Under Reeves, financial regulation shifted towards supporting economic expansion alongside maintaining financial stability. Her reforms included proposals to ease rules requiring banks to separate retail and investment banking operations, as well as measures designed to encourage more people to invest their savings in the stock market.
The banking industry has broadly welcomed the prospect of policy continuity.
"Continuity on the financial services growth agenda will be welcomed by banks, particularly after a period of political change and market uncertainty," said Steve Payne, Head of Banking at KPMG UK and Switzerland.
However, he noted that business confidence has become more cautious regarding the pace of regulatory reform.
"Our latest research shows that financial services leaders remain broadly confident in the government's strategy, but confidence has softened where regulatory reform is concerned," Payne said.
Industry body UK Finance also backed the government's plans, saying the proposed regulatory reforms would strengthen the sector's ability to support the wider British economy.
A spokesperson said the organisation looked forward to working with the new government to help deliver its financial services agenda. Photo: Sergeant Tom Robinson RLC/MOD, Wikimedia commons.
