Reeves: red tape 'boot on neck' of business

Rachel Reeves last night claimed rules and red tape were acting as a "boot on the neck" of businesses and risked "choking off" innovation across the UK without bold reforms.

- Kalyeena Makortoff

In her speech to City bosses attending the Mansion House dinner at London's Guildhall, the chancellor heaped further pressure on regulators to allow for more risk to boost economic growth.

"It is clear that we must do more," Reeves said. "In too many areas, regulation still acts as a boot on the neck of businesses, choking off the enterprise and innovation that is the lifeblood of growth.

"Regulators in other sectors must take up the call I make this evening not to bend to the temptation of excessive caution but to boldly regulate for growth in the service of prosperity across our country." The comments followed the launch of her financial services strategy, dubbed the Leeds Reforms, at a summit with banking bosses and the heads of City regulators in West Yorkshire yesterday.

Reeves plans to water down a series of regulations introduced in the wake of the 2008 financial crisis, after strong lobbying by City firms, and push for more risk-taking by businesses and consumers.

However, she argued that the government was "regulating for growth", and that weaker regulations would ultimately benefit consumers.