Jeremy Hunt, the UK chancellor of the exchequer, has unveiled a package of measures aiming to protect the City of London’s position as one of the world’s leading financial capitals. With the UK having lost nearly a tenth of the financial assets it manages since Brexit, plus at least 7,000 jobs, mostly to mainland Europe, much of the focus of these “Edinburgh reforms” is on making London more competitive.
This includes rowing back on rules introduced a decade ago to avoid a repeat of the global financial crisis, such as the ring-fence between customer deposits and investment banking activities, and holding finance bosses personally and financially responsible for things that go wrong on their watch.
Various other measures are designed to encourage UK financial regulators to prioritise delivering growth and international competitiveness, as well as making it easier for companies to raise capital ahead of a flotation and a consultation on a digital pound. We asked Robert Webb, a professor of banking and applied economics, for his take on what we know so far.
