Second Report - Edinburgh Reforms One Year On: Has Anything Changed?
Select Committee
Treasury Committee
HC 221
8 December 2023
Government response
Second Special Report - Edinburgh Reforms One Year On: Has Anything Changed? Government Response to the Committee’s Second Report · published 21 Feb 2024
Recommendations & Conclusions
7 results
1
Conclusion
Rejected
Para 17
Completing Edinburgh Reforms is a vital step to address over-zealous regulation.
Conclusion
The full Committee has previously concluded in its report on the Future of financial services regulation that “there should be a secondary objective for both the Financial Conduct Authority and the Prudential Regulation Authority to promote long-term economic growth” but …
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Government Response Summary
The government rejects the committee's conclusions, asserting that the Edinburgh Reforms will have a substantial impact, cannot be delivered faster, and are progressing well, with 21 of 31 commitments already delivered as of October 6.
HM Treasury
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7
Conclusion
Rejected
Para 36
Treasury's initial actions are preparatory work, not delivered financial services reforms.
Conclusion
While the Treasury has delivered what it set out to do in these six strands of work, namely publishing documents, welcoming a regulatory consultation, and establishing reviews or taskforces, none of these are in of themselves reforms to the UK’s …
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Government Response Summary
The government rejects the committee's conclusion, asserting that the Edinburgh Reforms are substantial and cannot be delivered faster, emphasizing that regulatory change is a multi-step process involving consultation and that 21 of 31 commitments have already been delivered.
HM Treasury
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10
Recommendation
Rejected
Para 47
Prioritise progress on secondary legislation for building society mutual deferred shares.
Recommendation
Given that Parliament has expressed its will through the Mutual Deferred Shares Act 2015 that building societies should be able to raise finance through mutually deferred shares, the Committee expects the Government to address the lack of progress made on …
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Government Response Summary
The government rejects the implicit criticism of slow progress, stating that delivering ambitious regulatory change requires careful work and consultation, and is progressing responsibly, with 21 of 31 Edinburgh Reforms commitments already delivered.
HM Treasury
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12
Conclusion
Rejected
Para 53
Edinburgh Reforms achievements fail to make substantial difference to UK economy.
Conclusion
The Chancellor’s Edinburgh Reforms speech made big promises. However, from what has been completed so far, the Sub-Committee is of the view that none of the achievements to date will make a substantial difference to the UK economy.
Government Response Summary
The government rejects the conclusion, stating that 21 of 31 Edinburgh Reform commitments have been delivered and asserts that these reforms will substantially impact the UK economy and financial services sector, promoting growth and competitiveness.
HM Treasury
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13
Conclusion
Rejected
Para 54
Many Edinburgh Reforms are preparatory work, not substantial regulatory changes.
Conclusion
Many of the strands of work included in the Edinburgh Reforms are not reforms, but are more preparatory work for potential reforms in the future and should be 28 Edinburgh Reforms One Year On: Has Anything Changed? treated as such. …
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Government Response Summary
The government rejects the committee's conclusion that many Edinburgh Reforms are merely preparatory work or lack significant impact, asserting that the reforms are substantial and that 21 of 31 commitments have already been delivered to promote growth and competitiveness.
HM Treasury
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14
Conclusion
Rejected
Para 55
Excessive delays in implementing Treasury financial services policy changes observed.
Conclusion
The Sub-Committee understands and supports the Treasury in carrying out reforms that follow the appropriate processes. Reforms to the financial services rules should be evidence-based, taking into consideration views from both industry and wider society. This engagement takes time and …
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Government Response Summary
The government rejects the committee's conclusion that the implementation of reforms takes too long, arguing that delivering ambitious regulatory change is a multi-step process requiring careful work and consultation, and asserts that 21 of 31 Edinburgh Reforms commitments have already been delivered.
HM Treasury
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16
Recommendation
Rejected
Para 57
Ensure sustained pace for moving onshored rules into financial regulators' rulebooks.
Recommendation
The Treasury and the regulators have told us the process of moving the onshored rules into the regulators’ rule books will take many years. The regulators and the Treasury must ensure that there is a sustained and focussed pace of …
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Government Response Summary
The government rejects the recommendation for a faster pace of change, stating that the reforms cannot be responsibly delivered any quicker and are well underway, with 21 of 31 commitments already delivered.
HM Treasury
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