Reeves sets out sweeping reforms to financial sector

RACHEL Reeves has set out sweeping reforms to the UK's finance industry in the hope of delivering much-needed economic growth.

- DAVID HUGHES and VICKY SHAW

The Chancellor hopes the drive to cut red tape and increase innovation, billed as the biggest changes in more than a decade, will turn around an economy that has shrunk in recent months.

Ms Reeves, who also hopes for increased taxes from a growing economy to help balance her books, said the reforms unveiled in Leeds would help with "reinvigorating the whole economy."

The plans include measures to make it easier for first-time buyers to get on the housing ladder with increased levels of borrowing and efforts to help new financial technology (fintech) firms grow in the UK.

The Chancellor said: "We are fundamentally reforming the regulatory system, freeing up firms to take risks and to drive growth.

"Second, we're providing certainty for banks operating in the UK, and ensuring that UK banks have the ability to compete internationally and drive economic growth. Third, we're doubling down on making the UK an innovation capital and the place of choice for fintechs to start up, to scale up and to list in the UK.