Financial Services Reforms

Debbie Abrahams Excerpts

Tuesday 11th July 2023 Commons Chamber

[Andrew Griffith]

My hon. Friend may wish to ask that question in due course. With respect to the Secretary of State for Business and Trade, I can only speak for the financial services sector. Today we are publishing documents to repeal 100 elements of retained EU law. That builds on reforms we already had in train, such as the prospectus directive. I can certainly give him my confidence and assurance that we are significantly lightening the burden of regulation, but more importantly, making it appropriate for the unique fact pattern of the UK as an open, innovative global market.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

The Minister will be aware that the Bank of England had to intervene in the gilt market after the disastrous mini-Budget last September to restore market functioning, when sharp and rapid rises in gilt yields led to widespread selling of gilts by pension schemes’ liability-driven investment arrangements. We all recognise that we need to do more to ensure that our pensions—especially our defined-contribution schemes—are better. My question is about the risk. What risk assessment has been made of this proposed reform, particularly in terms of where the burden of risk falls?

[Andrew Griffith]

We have published today a consultation, and I hope the hon. Lady will feel that she can raise points during that. My hon. Friend the Minister responsible for pensions will always be happy to undertake engagement with the sector. Needless to say, we believe that we have the right balance of risk. The hon. Lady talks about volatility in the gilt market. That is one of the reasons we are so focused on not making unfunded spending commitments. The last thing that pensioners or the wider economy need is Labour’s £28 billion unfunded spending plans.