The United Kingdom releases finance to save its economy

While France scanned François Bayrou’s announcements. For example, a strategic speech caught attention on the other side of the Channel, Tuesday evening July 15. For example, In London. However. Meanwhile, Rachel Reeves, the Chancellor of the chessboard – the British equivalent of our Minister of Finance – spoke during the prestigious dinner of the Mansion House, official residence of the Lord -Maire de la City, the beating heart of British finance.

During this dinner. Meanwhile. Additionally, Meanwhile, the Minister of Finance spent several hours to reassure the City on the ability of the Labor government to straighten a fragile British economy. Similarly, In May, the gross domestic product (GDP) dropped by 0.1 %, while slight increase was expected and, in June, inflation surprised by leaping from 3.4 % to 3.6 % over a year.

For united kingdom releases finance save new the Chancellor of the chessboard. Meanwhile, the culprit is all found: united kingdom releases finance save it is the regulations that slows British growth. Moreover, “In too many areas. Furthermore. For example, the regulations still act as a shackles on businesses, stifling entrepreneurs and innovation, motors of growth”, She said in front of London financial circles late in the evening.

A few hours earlier. Therefore. For example, Rachel Reeves had already started to reveal his cards at a summit in Leeds bringing together the main players in finance. Furthermore, She presented the “Leeds reforms” there, qualified by the British Treasury as major financial regulation reforms in ten years.

If the term “deregulation” usually evokes the liberal lexicon, the position of the Minister of Labor Finance is nothing new. However, Rachel Reeves had already affirmed united kingdom releases finance save new his desire to loosen the regulatory vice on financial services. Moreover. believing that the financial post-crisis regulations of 2008 were “Ally too far” and stranded British united kingdom releases finance save growth.

The Chancellor of the Echiquier announced Tuesday that companies’ transparency rules will be reduced to encourage more companies to. However, launch on the London Stock Exchange. Companies now introducing their first rating will only have to publish their prospectus (the financial information document) only three. days before their introduction. against six before. In addition. the companies already listed will have to publish a new leaflet only if they emit more than 75 % of their capital. against 20 % currently.

Among the other activated levers. Rachel Reeves welcomed. Tuesday, July 15, the decision of the Bank of England to postpone the entry into force of the new equity requirements for medium -sized banks to 2028. A measure that united kingdom releases finance save new will allow banks to release capital and therefore support the British economy more.

“We have to redouble their efforts to place the United Kingdom at the top united. kingdom releases finance save of. the world race in the financial services sector”said Rachel Reeves in a statement published a few hours before his. speech to the Mansion House.

To achieve this. the Labor Government provides for the creation of a specialized service responsible for “Actively woo” Large international finance companies. This new service. integrated into the Office for Investment. the British government agency responsible for facilitating foreign investments, will play the role of one -stop shop.

It will be based on international diplomatic. economic networks to support foreign companies wishing to set up in the United Kingdom. by offering them tailor-made support, based on regional financial assets: asset management in Edinburgh, FinTechs in Leeds and Cardiff, or united kingdom releases finance save new insurance in Norwich.

In addition to the relaxation of the rules weighing on companies. Rachel Reeves also revealed an ambitious plan to orient the savings of the British to the united kingdom releases finance save actions. affirming that: “The United Kingdom displays the lowest level of individual investment among G7 countries, which means that savers do not maximize their yields and that British companies are missing an essential source of funding. »» According to the British Treasury. more than 29 million adults keep their savings on accounts only reporting only about 1 %. while the average return on ten -year stocks is around 9 %.

To reverse this trend, an information campaign piloted by banks will highlight the advantages of equity investment. From April 2026. the Financial Conduct Authority. the British market regulator, will set up a device allowing banks to report more profitable united kingdom releases finance save new investment possibilities to their customers. At the same time. warnings on the risks of financial products will be revised to become clearer and facilitate the choices of savers.

Rachel Reeves also plans to review the tax advantages granted to savers who united kingdom releases finance save exclusively. use cash savings accounts (ISA). in order to redirect part of this savings to the markets. But such a measure could increase funding costs for certain actors. which pushes the treasure to delay: the ISA reform remains under study.

The Minister of Finance also intends to attack another major issue: access to property. In an interview with Yorkshire Post Before her speech to the Mansion House. the Chancellor of the chessboard denounced as « ridicule » the fact that so many British are “Excluded from ownership. forced to spend a fortune in rents”.

To illustrate her point. she chose united kingdom releases finance save new to evoke her own family history:

To respond to this housing crisis across the Channel. the Labor government plans to soften the conditions for granting loans. The Bank of England will authorize more mortgage loans beyond 4.5 times the borrower’s income – a measure which could allow 36,000 people to buy accommodation from the first year.

In the process. Furthermore, the Nationwide. the first mutualist bank of real estate loans in the United Kingdom, will expand access to its popular “Helping Hand” loan for first-time buyers. As of July 16. the minimum income threshold to benefit will go from 35,000 to 30,000 pounds, paving the united kingdom releases finance save new way for more modest households.

At the same time. the Financial Conduct Authority plans to adapt its mortgage rules. in order to allow the consideration of rent historicals in the evaluation of the solvency of borrowers.