Critics warn that deregulating the City could pose economic risks, recalling the 2008 financial crisis, despite support from the financial sector.

This announcement is part of the Labour government’s broader focus on revitalizing sluggish economic growth, with Reeves highlighting that reforms are crucial for long-term stability.

During her Mansion House speech, Reeves will introduce the 'Leeds reforms' at a summit with City executives, emphasizing the importance of cutting burdensome regulations to stimulate growth and household finances.

The government also plans to collaborate with the Financial Conduct Authority, Bank of England, and Green Finance Institute on a pilot project to address barriers in financing high carbon reduction projects.

British finance minister Rachel Reeves is set to announce a series of major regulatory reforms on July 15, 2025, aimed at boosting the UK economy through financial services.

A key component of the reforms is making permanent an insurance scheme that encourages lenders to offer higher risk, high loan-to-value mortgages, fulfilling a pledge from last year's election campaign.

Reeves has criticized regulators for not prioritizing economic growth and argues that reducing red tape will benefit households across Britain through trickle-down effects.

Despite a strong first quarter in 2025, the UK’s overall economic growth remains sluggish, leading to expectations of significant tax increases in Reeves’ upcoming budget to address public finances.

These reforms include measures to reduce regulatory barriers for businesses, facilitate access to mortgages, and support green finance initiatives, with the goal of stimulating economic growth.

Following recent easing by the Bank of England, which could enable up to 36,000 additional mortgages annually, Nationwide is lowering its minimum income requirement for first-time buyers from 35,000 to 30,000 pounds.

She emphasizes that a thriving financial sector is vital for Britain’s overall success and growth ambitions, and the reforms aim to stimulate broader economic investment.

Reeves will also announce a permanent government-backed guarantee scheme for 95% mortgages, encouraging banks to offer larger loans, a move aligned with her party’s manifesto.

The reforms follow an external review of transition finance, which identified risks related to new carbon-reduction technologies and uncertainties around government incentives.