UK Chancellor Rachel Reeves Sets Out Policy Priorities for Economic Stability and Financial Reform

In a formal address at Mansion House, UK Chancellor of the Exchequer Rachel Reeves presented a detailed overview of the government’s economic priorities and ongoing reforms to support financial services, regulatory streamlining, and international trade engagement. Marking one year since her appointment, the Chancellor’s speech reflected a commitment to strengthening institutional resilience, enabling long-term investment, and ensuring that economic growth supports households and businesses across the country.

Chancellor Reeves opened her remarks by acknowledging the economic and geopolitical challenges that have defined the international landscape in recent months. Against this background, she emphasized the government’s responsibility not only to monitor change but to respond to it with clarity and preparedness. In doing so, she reiterated her belief in the importance of policy frameworks grounded in fiscal stability, confidence-building, and broad-based opportunity.

A key theme of the speech was the progress made over the past year in restoring the UK’s economic credibility. She noted that the government had taken steps to place public finances on a firmer footing, reduce debt as a share of GDP, and make prudent investments that are intended to enhance productivity. Citing recent Bank of England decisions to cut interest rates and the growth of real wages, she pointed to early indications that these efforts were beginning to have a tangible impact.

Reeves placed significant emphasis on the role of the financial services sector, describing it as integral to both economic output and daily life. With over one million jobs supported by the sector and regional hubs emerging across the UK, she acknowledged that the benefits of a well-regulated and productive financial system extend far beyond London. The Chancellor underscored her intent to ensure that institutions and individuals across the country are able to participate in, and benefit from, the success of the financial sector.

The Chancellor then set out a package of reforms designed to improve regulatory clarity and enhance the efficiency of financial services. She confirmed progress on several initiatives announced at the same venue the previous year, including the implementation of PISCES—a platform for private company share trading and changes to simplify capital-raising requirements. A new Listings Taskforce has also been launched in cooperation with the Office for Investment to encourage more firms to list on UK markets.

One of the more comprehensive reform areas outlined was pensions. The Chancellor discussed the government’s Pension Schemes Bill and the goal of establishing consolidated pension funds capable of allocating capital more effectively to infrastructure and enterprise projects. She reiterated the importance of securing better long-term returns for savers, while aligning investment strategies with the broader goal of productive capital deployment within the UK economy.

In the area of international engagement, Reeves outlined recent developments in financial and trade cooperation with a number of countries and multilateral institutions. These include updated arrangements with the United States to address tariff-related concerns, regulatory discussions with European Union officials to improve financial coordination, and ongoing trade negotiations with India. She mentioned that a recently concluded agreement with India’s Financial Conduct Authority (FCA) has the potential to strengthen bilateral engagement in financial services. She also referred to dialogues with China and Switzerland as part of a wider policy of maintaining constructive economic ties.

Looking ahead to the upcoming G20 meetings, the Chancellor reaffirmed the UK’s support for cooperative frameworks and multilateral discussions aimed at addressing trade imbalances, investment flows, and regulatory cooperation. She expressed the government’s intention to continue working with international financial institutions such as the IMF and World Bank to strengthen surveillance mechanisms and improve coordination on macroeconomic challenges.

Domestically, Reeves detailed a four-part regulatory reform agenda: reviewing rules that may have created unnecessary constraints on risk, providing targeted adjustments to support sectors where the UK has comparative advantages, revising capital requirements to increase flexibility in lending and investment, and encouraging retail investment to allow savers greater access to high-performing domestic firms.

Specific measures include reforms to the Financial Ombudsman Service, efforts to shorten approval timelines for financial firms, and a reduction in regulatory barriers faced by asset managers and fintech companies. She also confirmed the government’s intention to move forward with digital financial instruments, including the development of tokenized securities and a digital gilt instrument, reflecting ongoing technological developments in the sector.

Capital adequacy rules for UK banks will also see adjustment. Reeves announced support for a higher threshold for minimum requirements applicable to certain institutions, aimed at allowing smaller and mid-sized banks greater operational freedom. At the same time, she confirmed that reforms would continue to respect international norms while addressing domestic needs, particularly in the context of Basel III.1 implementation.

On savings and retail investment, Reeves acknowledged that reforms to Individual Savings Accounts (ISAs) and related instruments are necessary to improve financial outcomes for individual investors and to provide more capital for UK enterprises. She announced that long-term asset funds would be allowed within ISAs and said that consultations would continue regarding additional measures to simplify investment advice and financial decision-making.

Throughout her address, the Chancellor emphasized that the government is working closely with regulators, financial institutions, and international partners to deliver a regulatory and investment environment that balances prudence with flexibility. She praised the collaboration of officials at the Treasury, the Financial Conduct Authority, and the Prudential Regulation Authority, and she reiterated her call for regulators across all sectors to adopt a growth-oriented mindset, while upholding their core responsibilities.

In closing, Reeves reflected on the importance of maintaining momentum. She stated that the reforms and initiatives outlined are part of a wider, multi-year plan to support households, improve access to opportunity, and enhance the overall resilience of the UK economy. She expressed confidence that the changes underway would deliver practical benefits to working people in terms of higher earnings potential, improved housing access, and increased financial security.

The Chancellor’s speech was followed by an address from the Governor of the Bank of England, Andrew Bailey, who highlighted the need to restore multilateral coordination and address long-term imbalances in the global economic system. Together, both speeches offered a detailed and balanced account of the UK’s economic direction—at home and in the international arena.

Rather than relying on aspirational language, the Chancellor’s remarks focused on measurable outcomes, legislative progress, and specific institutional mechanisms. The tone of the address remained consistent with that of a government aiming to align economic stability with long-term productivity and investment. By combining targeted regulatory reform with international cooperation, Chancellor Reeves conveyed her government’s approach as one of practical policy planning—driven by data, institutional collaboration, and sustained public engagement.