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It is trying a few weeks for British Chancellor Rachel Reeves. The UK government reversed more than £ 6BN of its planned savings on welfare payments. A tearful presence in Parliament again added speculation about his job. She now faces challenging questions on how she will balance books before the autumn budget. However, Reeves managed to provide a brief but positive distraction on Tuesday night by unveiling several promising reforms to promote the UK financial sector in Chancellor’s annual Haveli House speech. But there is no confusion: These measures will not be enough to highlight investors enthusiasm or the economic expansion of the nearest.
Several announcements of Reeves, which he had dubbed the Leeds Reforms, focused on making rules easier in the financial services industry. After the financial crisis, the rule manual moved towards maximum inspection of the sector, to provide high risk and provide strong security measures for consumers. But the Chancellor is right that in some cases precautions went far away from curbing development and eliminating the lifts of hand length.
For example, Reavs supported the recommendation of Bank of England to reduce Mrel capital requirements. These thresholds do not keep pace with the development of the economy, which means they can expand and lend small and medium -sized banks. The regulatory review will promote the international competition of a new conductive service sector by reducing the deadline, a plan to make senior management appointments easier, and to help companies of foreign financial services rapidly established in the UK.
Britain’s retail investment was also intelligent steps to improve the culture, which can help in breathing life in the UK stock markets. This includes a proposal to allow banks to provide targeted advice to customers who can disappear from meaningful investment opportunities. Britain’s personal savings account system provides access to tax-free savings to homes. However, each year most savings put their money into cash investment instead of potentially high returning equity. It is partly a function of low awareness and complexity.
Reeves should still ensure that he gets the remaining amount between cutting red tape and managing the risk. This is particularly important for senior managers’ governance, financial Lokpal service – a mediation of grievances between consumers and industry – and their plans to improve ringfaeing rules that force banks to separate their retail and investment banking activities. Some measures could also be backfire. An initiative to enable banks to expand low -income individuals to expand the mortgage, although well, continues to pull housebuilding to push the prices of Britain’s house even more.
For all his efforts, however, the announcements of the Haveli House of Reeves are unlikely to transfer dials over UK’s downbeat development possibilities. This is because the country has a long list of distortions other than cumbersome rules in its financial sector. In the short term, trade and investment activity – the city of London and beyond it – Stopped These rumors are going on that Chancellors can resort to increase revenue through high bank levy or any money tax in autumn. Despite commenting on the importance of fiscal stability, she failed to offer any assurance.
Policies that can provide more Immediate shock Comprehensive investment environment was also absent. Britain’s relatively high “stamp duty reserve tax” on share transactions SAPs London’s competitiveness and liquidity. It should be cut. The decrease in ISA boundaries, which some analysts promoted stock investments, were pushed back for a review. There was also no mention of less spectacular visa routes, which the industry wants to attract international talents.
Revies’ reforms will help reject parts of the financial sector. But this really grows to ensure – and increases growth more widely – further hinges on hard and boulder options.
