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Financial Services Reform 2025-07-16
16 July 2025
Lead MP
Emma Reynolds
Debate Type
General Debate
Tags
EconomyTaxation
Other Contributors: 24
At a Glance
Emma Reynolds raised concerns about financial services reform 2025-07-16 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The Government's financial services growth and competitiveness strategy is a 10-year plan to make the UK the global centre of choice for financial services investment by 2035. The sector, worth 9% of total economic output and providing 1.2 million jobs, will catalyse growth, enterprise, and opportunity in the rest of the economy. The reforms include a competitive regulatory environment, unlocking capital for investment, fostering fintech innovation, seizing opportunities in key areas like insurance and asset management, building a new retail investment culture, and enhancing UK leadership in financial services.
Mark Garnier
Con
Wyre Forest
While welcoming reforms that ensure the City of London remains a global powerhouse, the Conservatives criticise the Government's record on growth and stability. They point out inflation at 3.6%, stalled growth, and over 70 new regulations burdening employers. Garnier questions the clarity around reforms to the Financial Ombudsman Service and calls for alignment between FCA and PRA objectives in driving reform.
Emma Reynolds
Lab
Welcomed some reforms such as ISAs, MREL changes, and regulator objectives. Addressed questions about the Financial Ombudsman Service, ISA reform, ringfencing review, risk appetite for firms and regulators.
Meg Hillier
Lab/Co-op
Hackney South and Shoreditch
Asked when the Government would be clear about their appetite for risk in financial reforms to ensure stability. Emphasised the importance of informed risk-taking while protecting consumers from bad practices.
Daisy Cooper
LD
St Albans
Welcomed the announcement of a scale-up unit and reform plans for financial advice and guidance, but raised concerns about liquidity and valuation challenges. Inquired about financial literacy in schools and reforms to cash ISAs.
John Grady
Lab
Glasgow East
Defended the Government's introduction of red tape aimed at greater investment into British infrastructure, citing Opposition parties' criticism against planning reforms despite voting against similar measures.
Preet Kaur Gill
Lab/Co-op
Birmingham Edgbaston
Expressed concern about rising rents in Birmingham and welcomed the Chancellor’s reforms aimed at helping first-time buyers. She questioned the Government on their efforts to increase housing supply.
Responded by detailing how the government's package, including changes from the Bank of England and FCA, aims to ensure affordable mortgage products are accessible to more people. Mentioned planning reforms in the Planning and Infrastructure Bill as measures to boost housing supply.
John Glen
Con
Salisbury
Welcomed the Leeds reforms but raised concerns regarding the listing review and regulatory ambition, advocating for cultural and fiscal considerations alongside regulatory issues.
Clive Lewis
Lab
Norwich South
Warned about loosening mortgage lending standards and pushed for reassurance amid warnings from the Bank of England on financial stability risks. Stressed cautiousness given current economic instability.
Bobby Dean
LD
Carshalton and Wallington
Asked for assurances regarding ringfencing regulations, stressing concerns about speculative investment activities potentially putting family savings at risk.
Callum Anderson
Lab
Buckingham and Bletchley
Praised the government's work on Leeds reforms and sought details on the forthcoming retail investment campaign aimed at reshaping public financial understanding. Asked about measures to ensure benefits reach those who need them.
Julian Lewis
Con
New Forest East
Asked for assurances regarding risk warnings in future reviews, particularly emphasising the importance of maintaining clear indications of capital at risk.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
Inquired about how reforms to reintroduce informed risk-taking would deliver more capital investment into regions outside London, focusing on the north-east's potential for growth.
Rupert Lowe
Ind
Great Yarmouth
Criticised recent regulatory measures as financially illiterate and contrary to deregulation principles necessary for growth. Blamed Labour’s Financial Services Act 2000 for creating barriers to capital raising.
Andrew Pakes
Lab
Peterborough
Concerned about the potential negative impact of deregulation on mutuals like Nationwide and first-time buyers, urging reassurance that the co-operative and mutual sector remains essential.
Kieran Mullan
Con
Bexhill and Battle
Highlights concerns over poor rates of return on ordinary bank accounts despite inflationary pressures and unemployment increases, questioning the government's approach to stimulating growth through high-risk investments.
James Naish
Lab
Rushcliffe
Welcomes the new concierge service within the Office for Investment but seeks clarification on the regional dimension of its benefits for places like the east midlands.
Dwyfor Meirionnydd
Questions the government's approach to financial services reform, arguing it risks repeating past mistakes that led to economic downturns and low living standards in Wales.
Samantha Niblett
Lab
South Derbyshire
Welcomes the encouragement of retail investment through fintech platforms, highlighting opportunities for women-led businesses to scale and reach more people, thus enhancing financial inclusion.
Chris Vince
Lab/Co-op
Harlow
Highlights the issue of soaring private rental costs in Harlow and questions if reforms will help first-time buyers get on the housing ladder, noting social housing investment alongside these measures.
Gregory Campbell
DUP
East Londonderry
Questions public confidence in investing despite high FTSE levels, seeking assurance that regulators and financial services industry will educate people about investment opportunities.
Calder Valley
Welcomes the Leeds reforms to expand financial services beyond London, emphasising its importance for economic growth in regions like Calder Valley where Lloyds Bank employees work.
Member for Wyre Forest
Mark Garnier
The hon. Member for Wyre Forest did not make a specific speech recorded in the provided text, but his position is implied to be related to the debate topic.
Responded to the question about how to convince and educate 29 million people with deposits in low-yielding current accounts to invest. Cited research from AJ Bell that showed significant benefits of investing over cash ISA for long-term savings, emphasising the need to balance risk warnings with highlighting investment benefits.
Government Response
The Economic Secretary presented a detailed update on financial services reforms, focusing on reducing regulatory burdens, unlocking capital investment, fostering fintech innovation, enhancing leadership in key areas, building a new retail investment culture, and ensuring the UK remains open and connected. She highlighted the Government's commitment to supporting savers, first-time buyers, and British businesses. Discussed detailed plans for ISAs, ringfencing review, risk appetite in financial reforms. Emphasised the Government's commitment to economic growth while ensuring consumer protection. Provided reassurance on the Leeds reforms, detailing measures such as affordability checks and regulatory balance aimed at ensuring financial stability while promoting home ownership. Defended ringfencing regulations, highlighting flexibilities for growth without compromising depositor protection. Defends the government's approach to financial regulation and supports initiatives such as doubling mutual sector size, enhancing co-operative business support, addressing low savings returns through consumer duty, supporting fintech companies for better retail investment opportunities, encouraging inter-regional investment growth, and educating public about investment benefits.
Shadow Response
Mark Garnier
Shadow Response
The shadow minister welcomed reforms but criticised the Government for stifling growth with high inflation and stalled economic progress. He questioned the clarity around reforms to the Financial Ombudsman Service and emphasised the need for alignment between FCA and PRA objectives in driving reform.
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Assessment & feedback
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