UK Parliamentary Committee Criticizes Lackluster Post-Brexit Financial Reforms
A year after promising to enhance the UK financial sector's competitiveness post-Brexit, a parliamentary committee reports that the government's commitments remain unfulfilled. The 'Edinburgh Reforms', introduced by Chancellor Jeremy Hunt in late 2022, have not succeeded in bolstering the nation's financial market's appeal to international investors.
The Treasury Select Committee's assessment, issued Friday, contrasts starkly with Hunt's initial assertions that the reforms would not only retain the UK's rigorous regulatory standards but would exploit newfound freedoms from EU banking rule autonomy to counteract Brexit's detrimental financial impacts.
Despite initial enthusiasm likening the reforms to the transformative 1980s 'Big Bang' deregulation, the committee has found the changes to be ineffectual in significantly benefiting the UK economy. They challenge City minister Bim Afolami's claims that the government has completed most reforms, arguing that mere reviews do not constitute real policy changes.
The report reveals that several actions marked as "delivered" by the government are incomplete, while others only involve introductory steps for potential future reforms. MPs emphasized an urgent need to prioritize impactful reforms, noting current efforts are bogged down and progressing too slowly.