Chancellor Jeremy Hunt will launch a major reform of the UK’s financial sector, with plans to rip up red tape and replace a number of EU regulations.
Mr Hunt said the changes, to be announced in Edinburgh later, will “turbocharge” growth as the country struggles with a sluggish economy and a cost of living crisis.
He said: “This country’s financial services sector is the powerhouse of the British economy, driving innovation, growth and prosperity across the country.
“Leaving the EU gives us a golden opportunity to reshape our regulatory regime and unleash the full potential of our formidable financial services sector.”
The chancellor will outline more than 30 regulatory reforms, with hundreds of pages of EU rules to be reviewed, repealed, and replaced, ranging from disclosure for financial products to prudential rules governing banks.
Among the rules in the spotlight is “ring-fencing” – the regulation that requires major banks to keep investment and retail banking separate.
This rule was brought in during 2019 and, according to the Bank of England, was designed to “increase the stability of the UK financial system and prevent the costs of failing banks falling on taxpayers”.
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But the reforms would see banks released from the requirements if they do not have major investment activities.
Banks have previously pushed for the rule to be axed or for the deposit threshold that triggers it to be raised.
London is under pressure after being overtaken by Amsterdam as Europe’s top share-trading centre, and the EU is updating its own financial rules to reduce what remains of its reliance on the city.
Bank of England director Phil Evans said on Wednesday that being a global financial centre brings a number of benefits to the British economy, but it also brings responsibilities such as resisting pressure to “cut standards in the short term”.
When Canada goes to the polls today, it might be the second election Donald Trump wins in six months.
The US president has transformed Canada’s political landscape, and the “Trump effect” looks like it will be the difference between winners and losers.
Tariffs, and his threat to annexe the country as the 51st state, have provoked a surge in Canadian nationalism, and it’s made a favourite of the candidate styled anti-Trump.
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‘Canada will win’
His ruling Liberal party had been written off as an electoral contender. Canadians had turned their back on the party after a decade in power under Carney’s predecessor, Justin Trudeau.
The opposition Conservative Party, under the effective leadership of Pierre Poilievre, grew to a 25-point lead in the polls on the promise of change on the economy, crime and a chronic housing crisis.
However, his conservative politics are more aligned with the neighbour in the White House and, in Canada right now, it’s not a good look.
Image: Pierre Poilievre led the Conservatives to a 25-point lead before Trudeau stepped down. Pic: Reuters
In a stunning reversal of fortune, the Conservative Party’s lead vanished within weeks, as Canadians turned to Carney as the choice to take on Trump.
If he wins, the swing from Conservative to Liberal will be the biggest swing in the polls in recent democratic history.
Carney, 60, is the former governor of the Bank of Canada, as well as England. He replaced Mr Trudeau as Liberal Party leader and Canadian prime minister after his predecessor stepped down last month.
Polls indicate that Canadians see Carney as a stronger choice to negotiate with Donald Trump. He is a veteran of economic turmoil, having dealt with the 2008 financial crisis and Brexit.
Image: Pierre Poilievre and Mark Carney after an English-language leaders’ debate in Montreal. Pic: Reuters
At a weekend news conference, Sky News asked the Canadian prime minister what lessons he’d learned from Brexit that could be applied to his dealings with Donald Trump.
He replied: “The lessons of Brexit are beginning to be applied. When you break off, or substantially rupture, trading relationships with your major trading partners, including the most important trading partner of the United States, you end up with slower growth, higher inflation, higher interest rates, volatility, weaker currency, a weaker economy.
“We’re in the early stages of that in the United States, and that’s one of the important things here. With respect to influencing the president, with respect to the dynamics of a negotiation, America’s going to get weaker as time goes on, we’re going to get stronger.”
Canada’s vote is as close as it gets to a single-issue election.
Carney’s position as favourite is reinforced consistently by the opinion polls, although the gap narrowed as election day approached.
The Ukrainian president said the meeting ahead of Pope Francis’s funeral could end up being “historic.” Hours later, Mr Trump questioned Vladimir Putin’s appetite for peace in a Truth Social post.
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From Saturday: Trump meets Zelenskyy at funeral
Speaking before boarding Air Force One on Sunday, Mr Trump again said the meeting went well, and that the Ukrainianleader was “calmer”.
“I think he understands the picture, I think he wants to make a deal,” he said, before turning to Mr Putin and Russia.
“I want him to stop shooting, sit down and sign a deal,” the US president said, adding he was “very disappointed that they did the bombing of those places (including Kyiv, where nine people were killed in a Russian airstrike on Friday) after discussions”.
However, Mr Trump said he thinks Mr Zelenskyy is ready to give up Crimea, which the Ukrainian leader has repeatedly said he would refuse to do.
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He added that “we’ll see what happens in the next few days” and said “don’t talk to me about Crimea, talk to Obama and Biden about Crimea”.
Russia annexed Crimea in 2014, while Barack Obama was president.
Meanwhile, US secretary of state Marco Rubio told Sky’s US partner network NBC News that a peace deal to end the war was “closer in general than they’ve been any time in the last three years, but it’s still not there”.
“If this was an easy war to end, it would have been ended by someone else a long time ago,” he added on the Meet the Press show.
It comes after North Korea confirmed it had deployed troops to fight for Russia, months after Ukraine and Western officials said its forces were in Europe.
State media outlet KCNA reported North Korean soldiers made an “important contribution” to expelling Ukrainian forces from Russian territory, likely to be the Kursk region.
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KCNA said leader Kim Jong Un made the decision to deploy troops to Russia and notified Moscow, and quoted him as saying: “They who fought for justice are all heroes and representatives of the honour of the motherland.”
It also quoted the country’s ruling Workers’ Party as saying the end of the battle to liberate Kursk showed the “highest strategic level of the firm militant friendship” between North Korea and Russia.
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From June 2024: Putin drives Kim around in luxury limo during state visit
The North Korean leader promised at the time “full support and solidarity to the Russian government, army and people in carrying out the special military operation in Ukraine”.
At least 40 people have been killed and several hundred more injured after an explosion and fire at Iran’s largest port, according to state media.
The blast, at the Shahid Rajaei container hub near the southern city of Bandar Abbas, happened on Saturday as Iran held a third round of talks with the US in Oman about Tehran’s nuclear programme.
Shipping containers burned, goods inside were badly damaged and the explosion was so powerful that windows several miles away were shattered, reports said.
Image: Iranian Red Crescent rescuers work at the site of the blast. Pic: Reuters
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The blast at the Shahid Rajaei port happened as Iran and the US met for the third round of negotiations over Tehran’s nuclear program.
Helicopters and aircraft dumped water from the air on the blaze and by Sunday afternoon it was 90% extinguished, the head of Iran’s Red Crescent Society told state media.
Officials said port activities had resumed in unaffected parts of Shahid Rajaei.
Out of the 752 people who had received treatment for their injuries, 190 were still being treated in medical centres on Sunday, according to Iran’s crisis management organisation.
Chemicals at the port were suspected to have worsened the blast, but the exact cause of the explosion was not clear.
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Iran’s defence ministry denied international media reports that the explosion may be connected to the mishandling of solid fuel used for missiles.
The reports were “aligned with enemy psyops [psychological operations]”, according to a ministry spokesperson, who told state TV the blast-hit area did not contain any military cargo.
Image: Firefighters work to extinguish the blaze. Pic: AP
According to the Associated Press, British security company Ambrey said that the port in March received sodium perchlorate, which is used to propel ballistic missiles and the mishandling of which could have led to the explosion.
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The Financial Times previously reported two Iranian vessels had shipped from China enough of the ingredient to propel up to 260 mid-range missiles.
It was reportedly to help Tehran replenish stocks after its missile attacks on Israel in 2024.
Iran’s military has sought to deny the delivery of sodium perchlorate from China.
Iran’s state-run Irna news agency reported on Sunday that Russian President Vladimir Putin deployed several emergency aircraft to Bandar Abbas to provide help.