KEMI Badenoch vows to sweep away the risk aversion culture in the City of London to help turbocharge growth.
The Tory leader pledges to unshackle the financial sector to boost investment into the UK saying excessive red tape has killed growth and jobs.
She will point to how limits on lending and investing has been a drag on the economy and leaving us lagging behind Europe and Asian rivals.
In a speech at City UK’s annual summit, she will say: “If you eliminate risk, you also eliminate reward, you eliminate opportunity, you eliminate innovation, you eliminate growth.
“This is one of the reasons why the UK has become a low growth economy. Every great enterprise was built on risk.
“The desire for a zero-risk environment means Britain’s financial services sector is now more regulated than any other major market in the world.
“It is cheaper and easier to do business elsewhere, and so London is having its lunch eaten.”
Her plans include unleashing £450 billion of investment by adjusting the capital requirements for banks which is making the country less competitive.
The Tories also plan to replace the Financial Ombudsman Service calling it failing and unfit for purpose.
Britain’s ring-fencing regime that separates retail and investment arms will be abolished.
She will add: “You may have heard I am a culture warrior. I am going to fix the culture. We are going to sweep this culture away, and these changes are just the start.”
Sir Andrew Large, former Deputy Governor of the Bank of England, last night said: “This very welcome statement calling for a top-down strategy is the first time from a serious politician and long overdue.
“This has to be the way forward, rather than addressing the piecemeal problems individually. That way we can re-establish the City’s global leadership”.
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