Big picture & goals

• The Financial Services Growth and Competitiveness Strategy (aka the Leeds Reforms) is launched to support long-term growth, aiming to make the UK the premier location for financial services firms by 2035
• Financial services account for around 10% of UK output, employ 1.2 million people across the UK (e.g., London, Manchester, Cardiff) and are vital to mortgages, pensions, fintech, and SMEs.

1. Rolling back excessive regulation

• A key theme: regulation has gone “too far in seeking to eliminate risk.” The aim is to “regulate for growth, not just risk”
• Specific actions include:
  • Streamline Senior Managers & Certification Regime: faster approvals, remove certification duties from legislation
  • Reform the Financial Ombudsman Service—cap claims at 10 years and clarify redress
  • Review ring‑fencing of retail vs investment banking, with a report due early 2026

2. Targeted support & retail investor encouragement

• Introduce a Targeted Support Regime to let firms suggest suitable investment options without triggering strict advice rules
• Promote a public campaign (e.g., reminiscent of the 1980s “Tell Sid”) to encourage investment culture
• Enable Long-Term Asset Funds (LTAFs) to enter ISAs from April 2026

3. Capital reforms

• Delay implementation of Basel 3.1 market‑risk rules from 2027 to 2028; adapt capital rules to unlock lending
• Increase bank capital/work‑out thresholds—for example, doubling the MREL (loss‑absorbing debt) threshold to £40 bn
• Review ring‑fencing regime with Bank of England to allow greater capital flexibility

4. Finance innovation & digital infrastructure

• Set up an FCA/PRA Fintech scale‑up unit, expand support in payments, tokenised securities and stablecoins
• Pilot a Digital Gilt Instrument for tokenised debt issuance
• Formalise a stablecoin regulatory framework, including authorisation and safeguards

5. International and regional competitiveness

• Launch an Office for Investment concierge service (by October), aimed at helping international financial firms enter or expand in the UK
• Utilise the Berne Financial Services Agreement with Switzerland as a template for future trade deals,
• Support regional clusters with hubs in Manchester, Cardiff, Belfast, Edinburgh, tying them to the industrial strategy

6. Mortgage & housing

• Introduce a permanent Mortgage Guarantee Scheme to help first-time buyers (potentially adding ~36,000 mortgages annually) and allow rent records to support mortgage applications

Analysis, reactions & risks

• Supporters see this as the most comprehensive pro-growth reforms since 2008, unlocking capital for SMEs, infrastructure, net-zero and digital innovation.
• Critics caution it mirrors pre-2008 deregulation, warning of revived systemic risks, housing bubble threats, and shifting responsibility onto consumers.
• Key voices—like the FCA’s Nikhil Rathi—demand clarity on the government’s risk appetite and structured debate about trade-offs within Parliament

Summary

The Mansion House speech introduced the Leeds Reforms, a sweeping package targeting:

1. Rolling back overly burdensome regulations.
2. Boosting retail investment and fundraising.
3. Freeing up bank capital for productive lending.
4. Accelerating digital innovation in financial infrastructure.
5. Enhancing the UK’s position as a global financial centre.

The strategy is bold and reformative, with clear potential upside, but also carries the challenge of balancing growth with financial stability.

Link: https://www.gov.uk/government/collections/mansion-house-2025