Finance bosses ‘optimistic’ about Labour plans to cut red tape, survey finds
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Finance bosses are optimistic about Labour’s plans to cut regulation across the sector, according to a survey, with more than half saying they plan to hire faster in 2025. Polling by consultancy KPMG found seven in 10 financial services bosses think the policies will help attract foreign investment into the sector.
Meanwhile, 55% of them said they plan to increase hiring in 2025, while 17% said they are planning a “significant” recruitment drive, the research found. Chancellor Rachel Reeves pledged in November to rip up financial red tape. The sector goes into the new year with optimism about growth and profitability, coupled with strong intentions around hiring.
She said in a Mansion House speech that regulatory changes after the 2008 economic crash have “gone too far”. KPMG’s head of financial services, Karim Haji, said the optimism is “encouraging”. But he said “concerns” remain around the impact of the Budget on the sector.
The respondents with less confidence in the Chancellor’s plans pointed to increased tax for businesses outlined in the spending statement. In October, Ms Reeves raised the amount employers must pay on national insurance contributions (NICs), while also raising the minimum wage.
The policies are designed to pay for better public services such as transport and the NHS, but have attracted criticism from some sectors for making it more expensive to hire people. Mr Haji added that finance bosses would want “more details on the Government’s competitiveness strategy to really understand how the Chancellor is proposing to work with them” in 2025.
