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Financial Services: Mansion House Speech
18 November 2024
Lead MP
Caroline Nokes
Debate Type
General Debate
Tags
EconomyTaxation
Other Contributors: 25
At a Glance
Caroline Nokes raised concerns about financial services: mansion house speech 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
Expressed disappointment that the Chancellor did not attend in person to discuss important policy announcements, such as the consolidation of local government pension funds.
Tulip Siddiq
Lab
Hampstead and Highgate
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.
Mark Garnier
Con
Wyre Forest
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.
Tulip Siddiq
Lab
Hampstead and Highgate
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.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
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.
Tulip Siddiq
Lab
Hampstead and Highgate
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.
Daisy Cooper
Lib Dem
St Albans
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.
Stella Creasy
Lab Co-op
Walthamstow
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.
John Glen
Con
Salisbury
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.
Polly Billington
Lab
East Thanet
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.
Lisa Smart
Lib Dem
Hazel Grove
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.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
Praising the Chancellor’s ambition to grow the co-op and mutual sector, the Labour MP asked for a timeframe on process implementation.
Harriett Baldwin
Con
West Worcestershire
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.
Gregor Poynton
Lab
Livingston
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.
Rupert Lowe
Ind
Great Yarmouth
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.
Tulip Siddiq
Lab
Hampstead and Highgate
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.
Katrina Murray
Lab
Cumbernauld and Kirkintilloch
Called for measures to support credit unions in competing with the wider financial sector and thriving under current market conditions.
Mike Wood
Con
Kingswinford and South Staffordshire
Questioned whether the Chancellor's eight mega-funds would provide better service compared to existing public sector pension funds like the west midlands fund.
Gareth Snell
Lab Co-op
Stoke-on-Trent Central
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.
Andrew Murrison
Con
South West Wiltshire
Voiced concerns about potential overseas investment by small pension funds due to risk aversion, questioned the assessment made by the Treasury on this issue.
Tom Hayes
Lab
Bournemouth East
Invited the Minister to visit Bournemouth to support its finance sector and discuss steps for supporting coastal financial hubs.
Jim Shannon
DUP
Strangford
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.
Steve Yemm
Lab
Mansfield
Asked about measures being taken to unlock potential of mutual organisations such as Mansfield building society, a significant local employer and community investor.
Hendon
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.
Amanda Martin
Lab
Portsmouth North
Welcomed the national wealth fund, industrial strategy and Chancellor’s Mansion House speech. Emphasised the importance of consumer protection in the growth strategy.
Tulip Siddiq
Lab
Hampstead and Highgate
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.
Government Response
Discussed the Government’s plan to grow the UK financial services sector through various measures including economic stability, investment in green industries, pension fund consolidation, regulatory reform, and innovation initiatives. Emphasised the importance of supporting growth while maintaining consumer protections. The Minister responded to multiple questions, addressing concerns related to consumer protection, pension reforms, regulatory frameworks for 'buy now, pay later' companies, transparency in the financial industry, investment in energy systems, local authority autonomy in decision-making, co-op growth measures, and changes to senior managers certification regime. Defended current regulatory practices, emphasised ongoing reviews for reform, expressed commitment to modernising building societies legislation, discussed efforts to enhance financial services competitiveness through various measures like listing regime changes and pension reforms. Emphasised consumer protection in financial services and highlighted plans to reform the Financial Ombudsman Service. Discussed progress on financial inclusion, including a meeting of a financial inclusion committee next week.
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