The Chancellor’s appeal to regulators last month for suggestions to boost growth was mocked as evidence that the government itself is hopelessly bereft of ideas. Might as well ask traffic wardens to devise urban regeneration schemes, we scoffed, or food safety inspectors to plan state banquets. But it made sense to the extent that smarter regulation really should have the potential to boost economic activity – and there are signs the message has got through.
Bank of England governor Andrew Bailey speaks of using Brexit freedoms to shield smaller UK banks from ‘Basel rules’ that would require them to hold larger reserves. The Financial Conduct Authority chief Nikhil Rathi has been trimming his sails faster than an Olympic yachtsman on issues such as anti-money-laundering checks on smaller transactions. Abby Thomas and Baroness Manzoor have suddenly left their respective jobs as chief executive and chair of the allegedly too claimant-friendly Financial Ombudsman Service. And Marcus Bokkerink is no longer chair of the Competition and Markets Authority, following a reportedly ‘underwhelming’ CMA submission in response to Rachel Reeves’s call for every regulator to help ‘tear down barriers to growth’.
Not so hopeless after all? Bear in mind that where ministers foresee a pragmatic regulatory regime ‘supercharging the economy with pro-business decisions’ (to quote the Business Secretary Jonathan Reynolds), doubters fear a dangerous watering-down of protections. I hope Reeves remembers the zenith of Labour’s previous embrace of light-touch City oversight in the interest of competitiveness. It can be dated to 5 April 2004, when she was a fresh-faced Bank of England trainee and her predecessor Gordon Brown was visiting a new tower in Canary Wharf to congratulate its trading-floor denizens on ‘the contribution you and your company make to the prosperity of Britain’.
Magazine articles are subscriber-only. Keep reading for just £1 a month
SUBSCRIBE TODAY- Free delivery of the magazine
- Unlimited website and app access
- Subscriber-only newsletters
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in