On 16 December 2025, there was published a letter from the Economic Secretary to the Treasury to the Chair of the House of Lords Financial Services Committee (the Committee).

The letter responds to the Committee’s earlier letter regarding to the Government’s response to the Committee’s report, Growing Pains: Clarity and Culture Change Required.

The letter responds to the Committee’s concerns that:

• The Government has not set out the evidence base to link growth of the financial services sector to growth in the wider economy.
• A gap remains in the ability of the Government and Parliament to measure the FCA and PRA’s performance in facilitating the medium to long-term growth of the UK economy.
• The performance metrics currently published by the FCA and PRA are not sufficiently rigorous.

The letter also covers the Committee’s recommendation that the Government commission an independent study to facilitate an international comparison on the cost of regulation.