HM Treasury has published its first Financial Services Growth and Competitiveness sector plan, launching the ‘Leeds Reforms’ package of changes to UK financial regulation and related government initiatives intended to attract inward investment, increase retail participation in markets and reduce regulatory burdens on firms. The plan sets ambitions for the UK to be the number one destination for financial services businesses by 2035 and to double the real growth rate in financial services net exports between 2025 and 2035 compared with 2014–2024. Measures to ‘unlock’ retail investment include an industry-led advertising campaign backed by major banks and investment firms, and a shift to allow banks to alert customers with cash in low-interest accounts to specific investment opportunities. The Financial Conduct Authority (FCA) is to roll out Targeted Support from April 2026 and risk warnings on investment products will be reviewed; the Government will also continue to consider reforms to Individual Savings Accounts (ISAs) and savings, including allowing Long Term Asset Funds to be held in Stocks & Shares ISAs in 2026. On market entry and conduct frictions, the package includes a new concierge service within the Office for Investment, refocusing the Financial Ombudsman Service as an impartial dispute-resolution body with decisions more closely aligned to FCA rules, streamlining the Senior Managers and Certification Regime with an aim to halve firm burden, and an FCA assessment of how the Consumer Duty should apply to wholesale firms. On bank capital and structure, the plan backs Bank of England reforms to raise the minimum requirement for own funds and eligible liabilities (MREL) threshold to GBP 25–40 billion and introduces Basel 3.1 from January 2027, while delaying requirements for the largest firms’ investment banking activities to align with other jurisdictions’ implementation. It also launches a review of the ring-fencing regime led by the Economic Secretary and notes a Financial Policy Committee review of bank capital requirements. Separate housing-related measures include the Bank of England allowing more lending at over 4.5 times a buyer’s income, an FCA consideration of simplified mortgage lending rules for remortgaging, and a planned permanent government-backed Mortgage Guarantee Scheme; Nationwide is lowering income thresholds for its ‘Helping Hand’ mortgage from 16 July 2025.
HM Treasury 2025-07-15
United Kingdom's HM Treasury publishes Leeds Reforms sector plan to unlock retail investment and streamline financial regulation
HM Treasury has unveiled its Financial Services Growth and Competitiveness sector plan, introducing the 'Leeds Reforms' to attract investment, boost retail market participation, and reduce regulatory burdens. Key measures include an industry-led advertising campaign, reforms to Individual Savings Accounts, and a new concierge service for market entry. The plan supports Bank of England reforms to raise the MREL threshold and introduces Basel 3.1 from January 2027, alongside housing-related measures like simplified mortgage lending rules and a permanent Mortgage Guarantee Scheme.