The Treasury is set to announce major changes to Britain's banking ring-fencing rules this week, designed to unlock billions in additional lending capacity.
Chancellor Rachel Reeves has approved sweeping reforms affecting Barclays, HSBC, Lloyds Banking Group, Natwest and Santander UK. A Whitehall source told Sky that "a Treasury announcement regarding the plans could arrive as early as Monday."
The changes will dismantle what government and industry figures describe as the most significant regulatory burden imposed after the 2008 banking crisis. Banks will be permitted to carry out more activities within their safer, ring-fenced operations than previously allowed.
The reforms will enable lending to public institutions including the British Business Bank and National Wealth Fund at lower funding costs. Banks will also be allowed to share services between their ring-fenced and non-ring-fenced divisions.
The move comes as Labour scrambles to placate banks and stimulate growth amid electoral pressures. Former deputy PM Angela Rayner, a frontrunner to succeed Starmer, has previously suggested raising the "bank surcharge to five per cent" to generate £1.5bn annually.
The reforms aim to boost economic growth without compromising financial stability or depositor protection, as ministers push to drive expansion through increased lending capacity.
READ THE FULL STORY: Reeves 'to announce' new Barclays, HSBC, Lloyds, Natwest, Santander rule 'on Monday'
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