Rachel Reeves has been told to scrap red tape to spark growth (Image: Getty)
Rachel Reeves has been urged to cut red tape as the UK economy is seen as more "restrictive" than others around the world. It comes after a group of four bank chiefs urged the Chancellor to go further as she continues on a quest for growth. In a letter obtained by Sky News, the chief executives of HSBC Holdings, Lloyds Banking Group, NatWest Group and Santander UK said that ring-fencing separating consumer lending operations from investment banking "is not only a drag on banks' ability to support business and the economy, but is now redundant". Regulations were introduced after British taxpayers had to bail out several failing lenders amid the 2008 financial crisis.
They added: "With global economic headwinds, it is crucial that, in support of its Industrial Strategy, the government's Financial Services Growth and Competitiveness Strategy removes unnecessary constraints on the ability of UK banks to support businesses across the economy and sends the clearest possible signal to investors in the UK of your commitment to reform.
Article continues belowADVERTISEMENT
Undo
READ MORE: The NHS will test all 'trans' children for autism and evaluate mental health
Stay up-to-date with the latest Money news Join us on WhatsAppOur community members are treated to special offers, promotions, and adverts from us and our partners. You can check out at any time. Read our Privacy Policy
The UK's financial services sector is 'restrictive', an expert has said (Image: Getty)
"While we welcomed the recent technical adjustments to the ring-fencing regime, we believe it is now imperative to go further. Removing the ring-fencing regime is, we believe, among the most significant steps the government could take to ensure the prudential framework maximises the banking sector's ability to support UK businesses and promote economic growth."
April LaRusse, head of investment specialists at Insight Investment, told BBC Radio 4's Today programme this morning: "I think there's an argument for looking across Europe, and across the world, and saying how are other large economies actually making sure their banks are safe, and I think the UK does look stand out as particualrly restrictive."
DON'T MISS
Powered by
Jeremy Corbyn at war with Angela Rayner over plans to concrete over Britain's allotments
Keir Starmer's false advertising and 3 assurances Labour are failing on
New poll reveals exactly what Brits think of migration - it's bad news for Keir Starmer
Nigel Farage issues 8-word statement after Reform trans row erupts
New poll reveals Keir Starmer and Rachel Reeves are now less popular than Donald Trump
POLL: Will Keir Starmer's ‘one in, one out' deal stop the boats?
Angela Rayner told 'there's still time' to reject Chinese Super Embassy in London
Labour proves Keir Starmer is busted flush with move showing it can get even worse
Deluded Keir Starmer shows how wrong Labour's priorities are with one new scheme
Labour surrendered on housing within days - here are vital steps they won't take for UK
Labour MP under investigation over Israel-Palestine trip
Rachel Reeves issued major warning by business bosses over jobs
Where will it end? Now Angela Rayner threatens allotments with war
Britain's seaside towns can be saved with one simple move by Labour
Neurologists Reveals: The #1 Enemy Tinnitus Has (Try This Trick Tonight)HearWellCenter |
Undo
Disaster for Keir Starmer as tens of thousands demand general election now in new petition
Rachel Reeves tax bombshell as 3.35m people's savings to be hit
Dementia Has Been Linked To a Common Habit. Do You Do It?Memory Health |
Learn More
Undo
Labour is conducting an assault on rural Britain with cruel family farm tax
Rachel Reeves has lost Labour the election and sent farmers to Reform UK
Put Aluminum Foil in The Toilet. Here’s WhyHealthtippro |
Undo
Breathtaking betrayal of UK taxpayers that even Emmanuel Macron can see
Fury over suggestion state pension age could be increased to 80
Dating: Meet 50+ women onlineMeetheage |
Read More
Undo
Jeremy Corbyn at war with Angela Rayner over plans to concrete over Britain's allotments
Keir Starmer's false advertising and 3 assurances Labour are failing on
Wrap Foil Around Doorknobs When Alone, Here's WhyTrendGuruTips |
Undo
New poll reveals exactly what Brits think of migration - it's bad news for Keir Starmer
Nigel Farage issues 8-word statement after Reform trans row erupts
Always Wrap Car Keys in Foil (Here's Why)TrendGuruTips |
Undo
New poll reveals Keir Starmer and Rachel Reeves are now less popular than Donald Trump
POLL: Will Keir Starmer's ‘one in, one out' deal stop the boats?
Here's What a Dental Implant Might Cost You in 2025 (See Price List)Dental Implants | Search Ads |
Read More
Undo
Angela Rayner told 'there's still time' to reject Chinese Super Embassy in London
Labour proves Keir Starmer is busted flush with move showing it can get even worse
ENT Specialists Amazed: This Spray Improves Your Hearing Faster Than ExpectedMediLisk |
Undo
Deluded Keir Starmer shows how wrong Labour's priorities are with one new scheme
Labour surrendered on housing within days - here are vital steps they won't take for UK
Men 40+ Across The US Are Rushing To Get This Muscle HackTonic Gym Pro |
Learn More
Undo
Labour MP under investigation over Israel-Palestine trip
Rachel Reeves issued major warning by business bosses over jobs
Meghan’s mansion proves why she left, here's how it looks insideLittle Fries |
Undo
Where will it end? Now Angela Rayner threatens allotments with war
Britain's seaside towns can be saved with one simple move by Labour
Disaster for Keir Starmer as tens of thousands demand general election now in new petition
Rachel Reeves tax bombshell as 3.35m people's savings to be hit
Labour is conducting an assault on rural Britain with cruel family farm tax
Rachel Reeves has lost Labour the election and sent farmers to Reform UK
Breathtaking betrayal of UK taxpayers that even Emmanuel Macron can see
Fury over suggestion state pension age could be increased to 80
Jeremy Corbyn at war with Angela Rayner over plans to concrete over Britain's allotments
Keir Starmer's false advertising and 3 assurances Labour are failing on
New poll reveals exactly what Brits think of migration - it's bad news for Keir Starmer
Nigel Farage issues 8-word statement after Reform trans row erupts
New poll reveals Keir Starmer and Rachel Reeves are now less popular than Donald Trump
POLL: Will Keir Starmer's ‘one in, one out' deal stop the boats?
Angela Rayner told 'there's still time' to reject Chinese Super Embassy in London
This College in Virginia Named Worst in the USBigGlobalTravel
Undo
Sponsored LinksSponsored Links
The 1 Household Item That Visibly Tightens Saggy SkinGlamourSkin
Undo
Sponsored LinksSponsored Links
Eagle Approaches Puppy in Yard - Watch What The Neighbor Did NextTips and Tricks
Undo
Sponsored LinksSponsored Links
Keep Your Mind Sharp With SudokuClassic Sudoku
Undo
Sponsored LinksSponsored Links
READ MORE: Kemi Badenoch tears into 'pompous' Starmer and Labour – 'cruel and incompetent'
READ MORE: GB News airs breaking news as host announces 'the end for Jess Phillips MP'
READ MORE: Sky News viewers ‘switch off’ over Trump’s ‘disrespectful’ Pope funeral act
The government says it is on a quest for growth (Image: Getty)
Trending
But City of former City of London stock broker and author, Sir Philip Augar, is more sceptical. He said: "The reason we have strict regulations in the UK is that the financial services industry is a much bigger proportion of the economy than in other countries."
Sponsored
People in Ashburn are Loving Martha Stewart's Meal Kit
Undo
He added that the letter from bank bosses was "shameless audacity" and "opportunistic to say the least, trying to use the current economic environment to improve the prospects of their own businesses".
The expert added: "I'm appalled by it."
SUBSCRIBEInvalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy