Britain’s banking watchdog has laid out plans to slash regulation across the industry in a bid to sweeten the sector’s operating environment.
In fresh proposals hoping to cut the red tape on the sector, the PRA identified 37 “individual reporting templates” which have “overlapping and complex requirements” in a bid to ease the administrative cost burden on firms.
The watchdog said the deletion of the templates, along with consolidation of its reporting rules into a single chapter of the PRA Rulebook would help streamline the process.
The savings are expected to save banks near £26m annually.
The moves come as the Treasury clamps down on the UK’s watchdogs after Chancellor Rachel Reeves branded financial services regulation a “boot on the neck of businesses”.
The PRA said the changes would not compromise its “primary objective” of ensuring the safety and soundness of firms, but would help remove unnecessary reporting costs and complexity, helping to boost growth.
Bank tax fears ramp up
Whilst the industry has pushed for the deregulation, the modest cost-savings come as the sector braces for a potential hefty tax hike in the Autumn Budget.
Banks have been named as one of the top picks for a cash grab as Rachel Reeves looks to fill a fiscal black hole projected to be over £20bn.
The Liberal Democrats joined calls from think tanks to slap a fresh levy on the lenders over the weekend.
The party’s Treasury spokesperson Daisy Cooper called for an annual £7bn hike on the sector, which she said would allow small firms and homeowners to “do the right thing” and invest in solar panels, heat pumps and insulation.
But such a move would face opposition from the industry which already faces an outsized tax rate compared to its peers overseas.
The sector’s total tax rate in London was 45.8 per cent for 2024 dwarfing European rivals Amsterdam (42 per cent), Frankfurt (38.6 per cent) and Dublin (28.8 per cent).