Mel Stride Calls for Regulatory 'Big Bang' to Revitalise UK Economy
Shadow Chancellor Sir Mel Stride is poised to deliver a landmark speech this weekend, promising a new "Big Bang" of City regulation that echoes the transformative financial reforms of the Margaret Thatcher era. Speaking at a Conservative conference, Stride will argue that excessive regulation has become a "vast yoke" on British businesses, stifling growth and innovation across the economy.
Critique of Over-Regulation and Risk-Aversion
In his address, Stride is expected to sharply criticise the accumulation of regulatory burdens, stating: "Regulation stifles growth, reduces employment, holds back investment. And for far too long, regulation after regulation has been quietly piled on top of our businesses, whereby little by little has become much too much – a vast yoke around the shoulders of every business in the land." He will specifically target what he describes as an overly cautious approach in the City of London, suggesting that efforts to "manage virtually every possible risk out of the system" have backfired.
Stride will contend that shifting disproportionate liability onto companies ultimately harms consumers and the wider economy. For instance, he plans to highlight how requiring expensive financial advice before investments can deter people from investing altogether, thereby reducing capital flow and economic dynamism.
Party Commitments and Political Positioning
The speech will outline previously announced Conservative commitments to slash rules related to diversity and net zero, many of which were introduced under previous Conservative administrations. Stride aims to position the party firmly on the side of investors and risk-takers, a move seen as countering threats from Reform UK, which has been boosting its financial credentials. Last year, Reform deputy leader Richard Tice promised a "Big Reform" for financial services, focusing on pensions, tax code simplification, quangos, and small business capital access.
Stride's address is also expected to criticise the growing public sector debt as a share of GDP and raise questions about the roles of bodies like the Bank of England, the Office for Budget Responsibility (OBR), the Prudential Regulation Authority, and the Financial Conduct Authority. However, Robert Jenrick, who has since joined the party as "shadow chancellor," has clarified that the Bank of England and OBR will remain independent.
Historical Context and Labour's Stance
This push for deregulation mirrors similar promises made by Labour before the last general election. Shadow Chancellor Rachel Reeves pledged that Labour would be the "most pro-business government this country has ever seen," with her growth plans also emphasising deregulation, including last year's Leeds Reforms. Stride's speech concludes with a rallying cry for a "new Big Bang" to support "risk-takers who drive growth," signalling a renewed focus on unleashing entrepreneurial spirit in the UK's financial heartland.
