UK government sets out financial services and regional growth agenda in Mansion House speech

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UK financial services growth agenda

Highlights

Chancellor Rachel Reeves outlines 'securonomics', prioritizing UK-wide growth, domestic industry development, and deeper EU ties to enhance economic resilience amid geopolitical risks.
Reeves announces publication of Transatlantic Taskforce on Markets of the Future recommendations, progress on the Financial Services Growth and Competitiveness Strategy, and advancement of stablecoin and tokenised deposit initiatives.
Regional investment measures include Treasury Green Book reforms, increased transport spending, devolved tax and mayoral powers, and focus on AI, quantum, and national security-linked industrial policy.

Growth strategy and financial sector priorities

As reported by GOV.UK, Reeves says the government is building on what it describes as stronger growth, lower borrowing and higher investment with a broader economic strategy she calls securonomics. In the speech, she argues that fiscal consolidation, public investment and economic reform are intended to make the UK more resilient as renewed hostilities in the Middle East test global markets and economic stability.

Reeves says the next phase of policy rests on three choices, expanding growth across all parts of Britain, ensuring future industries and jobs are built domestically, and deepening ties with the European Union after Brexit. She also presents financial services as a central part of that plan, saying the sector remains at the forefront of technological adoption and global competition.

The chancellor says she is publishing the recommendations of the Transatlantic Taskforce on Markets of the Future, launched with U.S. Treasury Secretary Scott Bessent last year, alongside an update on progress under the Financial Services Growth and Competitiveness Strategy. She adds that the UK now has what she describes as one of the world’s strongest stablecoin regimes, while the Great British Tokenised Deposit initiative is moving into pilot transactions.

Regional investment and industrial policy implications

Reeves says the government is trying to shift away from a model that concentrates too much power and investment in London, with reforms to the Treasury’s Green Book, higher transport spending for city regions and support for development corporations and place-based funds. She says recent devolution steps include wider integrated settlements, City Investment Funds and new mayoral powers such as an overnight visitor levy.

She also signals a larger transfer of economic authority, saying regional leaders should gain control over a share of national taxes including income tax and business rates. That approach, she says, is meant to support long-term local investment, strengthen accountability and unlock growth beyond the capital.

On industrial policy, Reeves links economic security directly to national security and points to intervention in British steel, support for defence and procurement changes designed to favour domestic suppliers in strategically important areas. She says AI is a defining technology for both security and growth, and outlines support through the Sovereign AI unit, an advanced market commitment to quantum, an AI hardware plan and a new AI Economics Institute.

In our earlier report on Bank of England Governor Andrew Bailey’s Mansion House remarks, we covered his pushback against sweeping deregulation and his call for targeted rule changes to support both growth and financial stability. We also highlighted his focus on cross-border risks from advanced AI models, arguing for stronger international coordination on testing and oversight to protect the financial system.

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