Financial Services: Mansion House Speech

Updated the House on the Government’s work to support economic growth through financial services, highlighting measures such as the new listings regime, pensions review, capital reforms for banks, and plans for a comprehensive strategy over the next 10 years. Emphasised investment in green industries, pension fund consolidation, regulatory reform, and innovation initiatives like PISCES and digital gilt instruments.

The Chancellor's Mansion House speech highlighted growth but neglected to mention pressing parts of her Budget. Growth has halved since the Conservatives left government. The increase in national insurance means businesses are picking up the tab for Labour’s spending. Pension reforms must deliver a secure return for savers while allowing for greater investment and returns, with clarity needed on criteria and risk profiles.

The Government's long-term vision includes using the national wealth fund and industrial strategy to grow the economy. The Budget supports economic growth by boosting investment and rebuilding Britain. The pensions investment review proposes consolidation in the defined contribution workplace market, with potential for £80 billion of productive investment. Each local authority retains control over impactful decisions while implementation is delegated to experts. Assets such as infrastructure enhance savers' returns and boost economic growth.

Concerns about the FCA's remit letter pursuing secondary objectives while protecting consumers may lead to consumer loss. The need for clarity on how the FCA ensures it maintains its approach of protecting consumers is raised, along with a question on whether pension funds will be mandated to invest in UK infrastructure.

The Minister thanked a Labour colleague for raising concerns about pension funds, stating that the Government is committed to financial inclusion and prioritising growth and international competitiveness. She also addressed issues related to consumer protection in remit letters.

The Liberal Democrat MP welcomed reforms aiming at growth without undue pressure on savings but urged the Government to review HMRC's approach towards SMEs applying for research and development tax credits, expressing concerns about rejections and delays.

The Labour MP called for urgent regulation of 'buy now, pay later' companies due to their significant impact on debt advice cases. She questioned the delay in implementing regulations until 2026.

The Conservative MP welcomed parts of the announcement regarding listings and mutuals but stressed the need for a cultural shift in pension industry leadership and urged transparency to measure performance gaps.

Asked about investment in energy systems vital for clean growth, the Labour MP sought assurance that financial service regulators will support the Government’s mission while maintaining high industry standards.

As a former trustee of a local authority pension fund, she inquired about retaining autonomy for environmental, social and governance reasons in investment decisions during ongoing reviews.

Praising the Chancellor’s ambition to grow the co-op and mutual sector, the Labour MP asked for a timeframe on process implementation.

Welcoming increases in financial advice access, the Conservative MP questioned whether the senior managers regime would be ended as part of regulatory changes proposed by the Government.

Acknowledging Labour’s previous report on financing growth, the Labour MP welcomed measures to support mutuals and co-operatives and sought clarification on how a new council would drive sectoral growth.

Critiqued the Chancellor's Mansion House speech for changing regulation emphasis from risk to growth, blaming FCA and PRA regulations for London market decline. Proposed disbanding these regulators in favour of light-touch Bank of England oversight.

Defended the current regulatory framework while acknowledging the need to consider adjustments to promote growth, highlighting efforts to review and potentially reform certification regimes to reduce costs and burdens without compromising accountability.

Called for measures to support credit unions in competing with the wider financial sector and thriving under current market conditions.

Questioned whether the Chancellor's eight mega-funds would provide better service compared to existing public sector pension funds like the west midlands fund.

Praised the co-operative and mutual business council announced in the Mansion House speech, sought details on how Ministers would interact with this new body and whether new financial instruments could be developed to aid mutual growth.

Voiced concerns about potential overseas investment by small pension funds due to risk aversion, questioned the assessment made by the Treasury on this issue.

Invited the Minister to visit Bournemouth to support its finance sector and discuss steps for supporting coastal financial hubs.

Welcomed London's progress towards becoming a major financial hub but stressed the need for guarantees and guardrails in pension pooling initiatives to protect savers' investments.

Asked about measures being taken to unlock potential of mutual organisations such as Mansfield building society, a significant local employer and community investor.

Acknowledged cross-party support for the Minister's statement while questioning whether steps were being taken to ensure financial stability following Conservatives' market chaos under Liz Truss.

Welcomed the national wealth fund, industrial strategy and Chancellor’s Mansion House speech. Emphasised the importance of consumer protection in the growth strategy.

Stressed the importance of consumer protection in financial services. Mentioned plans to introduce legislation for enhanced protections through the Financial Ombudsman Service. Highlighted progress on financial inclusion, including a meeting of a financial inclusion committee next week.