Edinburgh Reforms: City shake-up branded 'damp squib' by MPs

MPs have branded a post-Brexit shake-up aimed at boosting growth in the financial sector a "damp squib".

The Treasury Committee said since the "Edinburgh Reforms" package was set out, there has been little progress.

Its new report suggests some of the changes heralded by the Treasury were not yet complete.

But a Treasury figure said "significant strides" had been made towards making the UK more attractive in the face of fierce competition globally.

In the wake of the UK's exit from the European Union (EU), the government has been trying to overhaul financial regulation to improve London's attractiveness in comparison with other European rivals such as Paris or Frankfurt.

One year ago, Chancellor Jeremy Hunt announced the "Edinburgh Reforms" - 31 key measures, which included plans on scrapping a cap on bankers' bonuses and allowing insurance companies to invest in long-term assets such as housing and windfarms.

The package of changes was described as an example of post-Brexit freedom, with regulation being tailored to suit the needs of the UK economy.

However, the new analysis by the Treasury Committee said six of the 21 changes the government said it had delivered were not yet complete.

It also questioned whether another six, including things like publishing a document, should be considered "reforms" at all.

• Cap on bankers' bonuses to be scrapped

• Bank rules in biggest shake-up in over 30 years

Chair of the committee, Harriett Baldwin, said that more than a decade after the financial crisis, the Treasury was "absolutely" right to update rules to encourage growth.

"We welcome many of the changes as logical and sensible measures. We do, though, question the validity of claims that welcoming consultations, establishing reviews or publishing documents should be considered reforms," she said.

She described the Edinburgh Reforms as a "damp squib", due to "the lack of progress or economic impact."

In a statement issued to mark the anniversary of the changes being announced, the government said it had already delivered 22 of the 31 promises.

Economic Secretary to the Treasury Bim Afolami said: "My number one priority in this role is to deliver on the Edinburgh reforms.

"The reforms have shown the UK's dedication to fostering a sensible, innovative and robust financial landscape - over the past year we've made significant strides towards creating an environment that supports economic growth, openness and the well-being of savers."

London's position as the pre-eminent European financial centre has been dented in recent years, and a number of companies have moved their share listings away from the UK.

Earlier this week, travel giant Tui said it was considering quitting the London Stock Exchange in favour of a listing in Frankfurt.

Britain's biggest chip company, Arm Holdings, listed its shares in New York earlier this year, and building supplies firm CRH and plumbing company Ferguson have also shifted their listings to the US.

On Friday, betting giant Flutter - which owns Paddy Power and Betfair - said it would list its shares in the US from 29 January.

The company's shares are traded on the London Stock Exchange and Flutter said it would keep its primary listing in the UK. However, there has been speculation that it could switch its main listing to the US at a later date.