Source · Select Committees · Treasury Committee
Second Report - Edinburgh Reforms One Year On: Has Anything Changed?
Treasury Committee
HC 221
Published 8 December 2023
Recommendations
16
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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Conclusions (5)
1
Conclusion
Rejected
Para 17
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 that “pursuing international competitiveness in the short term is unlikely …
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.
7
Conclusion
Rejected
Para 36
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 financial services regulations. We do not consider reviews alone to …
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.
12
Conclusion
Rejected
Para 53
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.
13
Conclusion
Rejected
Para 54
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. However, even among the reforms that we agree are genuine …
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.
14
Conclusion
Rejected
Para 55
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 must be done correctly, giving stakeholders sufficient time to consider …
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.