Chancellor Rachel Reeves used her first Mansion House speech on 15 July 2025 to outline a measured but ambitious package of reforms for the UK’s financial services sector, now dubbed the “Leeds Reforms.”

The focus was on unlocking investment, improving the UK’s competitiveness, and reshaping regulation to better support growth. But just as noteworthy was what was not said. Many had speculated that Reeves might reduce the ISA allowance, particularly the £20,000 cap on cash ISAs, or introduce new banking taxes to address fiscal pressures. Neither featured in the final announcement. Instead, ISA limits remain unchanged for now (though they remain under review), and no new banking levies were introduced.

This cautious tone was broadly welcomed by markets and professionals. Rather than delivering headline-grabbing tax changes, the Chancellor prioritised long-term structural reform aimed at encouraging investment, simplifying regulation, and enhancing the UK’s position as a global financial hub.

For private clients, business owners, and our professional partners, the speech provides a useful early signal of the government’s economic priorities and potential implications for future planning.

Key Reform Themes

1. Retail Investment and ISA Access

• From April 2026, Long-Term Asset Funds (LTAFs) will be permitted within Stocks and Shares ISAs. These funds invest in less liquid assets, such as infrastructure, private equity, and venture capital – potentially broadening the range of investment strategies that may be accessible within a tax-efficient wrapper.
• A new FCA “Targeted Support” regime will allow investment firms to guide clients with similar needs toward suitable products, striking a middle ground between general guidance and full personalised advice.
• A joint Treasury-FCA campaign will be launched to encourage greater retail investment participation, aiming to shift behaviour away from low-return cash savings and towards long-term market engagement.

2. Regulatory Efficiency

• The Chancellor pledged to accelerate regulatory approvals by the FCA and PRA, including authorisations and variations of permissions.
• A wider review of regulatory burdens will seek to streamline existing requirements and reduce the number of statutory objectives that regulators must balance.
• The Consumer Duty will be ‘rebalanced’ for wholesale firms to ensure it is applied proportionately in dealings with professional and institutional clients.

3. Banking and Prudential Reform

• The government is reviewing the ring-fencing regime which separates retail and investment banking to reduce duplication and unnecessary complexity.
• Consultation is also expected on reforms to capital and resolution requirements, particularly to ease the regulatory burden on small and mid-sized banks.

4. Positioning the UK as a Global Financial Hub

• A new concierge service will help overseas financial institutions navigate UK regulatory approvals and enter the market more smoothly.
• Efforts will continue to recognise equivalent overseas regulatory regimes, simplifying cross-border activity for global firms.

Market Reception

The reforms were received as pragmatic and constructive. While some market commentators hoped for bolder measures, many welcomed the Chancellor’s steady approach and focus on long-term competitiveness.

Importantly, the absence of any cuts to ISA allowances or the introduction of banking sector levies was seen as reassuring. It allows investors and financial professionals to plan with greater confidence while recognising that reform remains an ongoing process.

Conclusion

The 2025 Mansion House speech did not deliver sweeping changes, but that was arguably its strength. Rather than reactive policymaking, the focus was on laying the groundwork for sustainable economic growth through long-term capital mobilisation, smarter regulation, and a renewed push for retail investment.

We will continue to monitor developments closely, particularly around ISAs and any potential changes to banking sector taxation, to ensure your financial plan remains aligned with the evolving landscape.

As individual circumstances vary, we recommend discussing these developments with your financial adviser at your next opportunity to assess any potential implications for your financial plan.

Contact us on 0330 320 9280, email info@cravenstreetwealth.com or complete our online enquiry form for practical advice tailored to your own circumstances and needs.

 

Sources:

Sky News – “Most important part of Mansion House speech was what wasn’t said”

Financial Times – “Rachel Reeves’ limited pitch to Britain’s financial sector”

MoneyWeek – “Reeves delays cash ISA reform, but savers are not out of the woods yet”

Reuters – “UK’s Reeves vows to ease more rules to lift ‘boot on the neck’ off business”

The Banker – “Mansion House speech: Rachel Reeves’ five key reforms for UK banks”

Travers Smith – “The Leeds Reforms: In search of growth”

 

The content of this article is for information only and does not constitute formal financial advice. This material is for general information only and does not constitute investment, tax, legal or other forms of advice.

References to legislation and tax is based on our understanding of United Kingdom law and HM Revenue & Customs practice at the date of publication. These may be subject to change in the future. Tax rates and reliefs may be altered. The value of tax reliefs to the investor depends on their financial circumstances. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of these comments.

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