Chancellor unites banks on economic plan

In an important gathering yesterday, Chancellor Rachel Reeves convened the CEOs of major retail banks, including Barclays UK, Lloyds Banking Group, Santander UK, NatWest Group, Nationwide Building Society, and HSBC UK. Underlining the pressing need for economic stability in light of heightened global uncertainty following the conflict in the Middle East, she stated that the government prioritises this stability above all.

Reeves articulated how her government’s economic plan aims to reinforce the UK’s resilience while keeping costs manageable for households and businesses. She highlighted the critical role played by the financial services sector in managing risk and backing consumer confidence. The Chancellor reinforced that “the financial services sector has a central role to play in managing risk, backing consumer confidence, and supporting households.”

During the meeting, which coincided with Fintech Week 2026, Reeves and Economic Secretary Lucy Rigby highlighted the advancements made in delivering the Financial Services Growth and Competitiveness Strategy. New initiatives like Targeted Support to boost retail investment, the Financial Services Skills Commission aimed at assessing disruptive technologies and skill needs, as well as the launch of a financial services Skills Compact feature prominently in their plans. Furthermore, major pensions reform through the Pensions Bill was announced as part of these ongoing efforts.

Reeves further showcased the UK’s ambitions to remain a global fintech leader, particularly as Rigby had recently appointed Chris Woolard CBE as the new Wholesale Digital Markets Champion to drive tokenisation in financial markets. A fresh package of measures aimed at enhancing the UK’s competitive edge and modernising payment services regulation was also introduced.

In a significant evolution of the UK’s framework for individual accountability in financial services, changes to the Senior Managers and Certification Regime were unveiled today. The Treasury released its response to consultations on these reforms, while the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) also published their policy statements reflecting updates to the SM&CR rules and guidance. By working in concert, the government and regulators aspire to halve regulatory burdens, thereby simplifying the regime and aiding firms in navigating this regulatory landscape more efficiently.