On 23 September 2022, the Chancellor of the Exchequer, Kwasi Kwarteng, unveiled the new ‘Growth Plan’.
Key takeaways for the financial services sector announced within the plan include:
- Later this autumn the Government will bring forward an ambitious deregulatory package with its aim being to unleash the potential of the UK financial services sector. This will include the Government’s plan for repealing EU law for financial services and replacing it with rules tailor made for the UK, and scrapping certain EU rules deriving from Solvency II.
- The Prudential Regulation Authority will scrap rules that limit variable pay for senior bankers.
- The Government will change regulations to increase investment by pension funds into UK assets, benefiting savers and boosting economic growth, and incentivising investment into Britain’s science and tech companies.
- The ‘Growth Plan’ also brings forward the planned cut to the basic rate of income tax to April 2023, and abolishes the 45 per cent rate of income tax completely with the intention of making the UK more competitive.