Financial regulation would face complete reconstruction under Labour government – MLex

  • Banks, insurers and asset managers face a massive overhaul of regulation if the Labour Party wins December’s general election, under reforms laid out today taking aim at all major components of financial services oversight.
  • Shadow Chancellor John McDonnell outlined the proposed overhaul of the financial and business regulatory system in a speech today, to “close the gaps” in what he described as “the inadequacy of regulation.”
  • His speech was accompanied by a policy paper on Labour’s vision for corporate governance, accountability and regulation, which also covered measures to promote climate-related financial reporting and to set up a new statutory body to carry out business audits.
  • “Regulation is there to protect the public and promote broader systemic stability, but it is not currently delivering,” the paper said. “There have been widespread calls for reform, and it is time these were heeded.”

Manufacturers see orders rise after no-deal Brexit avoided – Reuters

  • British manufacturers saw a pick-up in orders in November albeit from near decade-low levels, helped by the avoidance of a no-deal Brexit at the end of October, a survey by the Confederation of British Industry showed on Tuesday.
  • The CBI’s monthly orders balance rose to -26 from -37 in October, their highest level since August and stronger than a median forecast of -31 in a Reuters poll of economists.
  • October’s level of orders was the weakest in nine years.

Boris Johnson government will not carry out any economic impact assessment of his Brexit deal, officials admit – The Independent

  • Ministers have dropped plans to publish a Treasury assessment, amid estimates of a hit to the UK economy of anything between £70 billion and £130 billion.
  • The stance was attacked as “a dereliction of duty” by Julie Ward, a Labour MEP, who uncovered it after submitting a freedom of information request.
  • “The government doesn’t even know, or don’t even seem to care, what their new Brexit deal will mean for the economy, business and families across the country,” she said.
  • Sajid Javid, the chancellor, was criticised for refusing to publish an assessment before MPs voted on the prime minister’s divorce deal last month.
  • MPs suggested it would echo Treasury data from last year, which said the limited free trade deal Mr Johnson now plans with the EU will strip 6.7 per cent from GDP over 15 years – meaning £130 billion of lost growth.
  • Now the FOI response has stated: “There is no ‘economic impact assessment’ based upon the withdrawal agreement, nor is there a date for an ‘economic impact assessment’ to take place.”
  • The Brexit department said it had published an “impact assessment” on “risks, costs and benefits to businesses”, but acknowledged: “It is not an economic assessment”.
  • Yet, when the row raged last month, both No 10 and Stephen Barclay, the Brexit secretary, suggested a full assessment would be released before the UK is due to leave the EU, on 31 January.
  • Ms Ward added: “This ensures the public will not know what it means for them in the upcoming general election. This impact assessment must be done immediately – the public is being kept in the dark.”