Forty years after Big Bang, the City cannot write its own rules for growth

Mick McAteer | 21st April 2026 | Comment

Mick McAteer argues that the City has long had unjust and disproportionate influence over government policy (Photo by Dan Kitwood/Getty Images)

Greater deregulation for the financial sector in the City is not the way forward, writes Mick McAteer.

The City of London is seen as a ‘crown jewel’ of the UK economy, central to the Government’s plans to promote economic growth and competitiveness. At the Financial Inclusion and Markets Centre (FIMC) we fully support the need for a successful finance sector that works for the real economy, environment, and society. But, we question the central role given to finance and how growth is being pursued.

The current deregulation agenda and creating pro-growth conditions for the City risks reversing the progress made in making the financial system more resilient post 2008 and cleaning up finance after the litany of scandals that left a legacy of mistrust. Policymakers risk forgetting the lessons from history, that: the UK is still exposed to the ‘too much finance’ curse; and allowing finance to become too dominant is counterproductive to creating sustainable, equitable growth shared across the UK regions.

The job from making finance work is far from done yet the operational independence of the financial regulators – a key strength of the UK financial system – is compromised due to pressure from government and industry lobbies to promote finance sector growth and competitiveness. Finance industry lobbies exercise undue influence over policymaking. No wonder we’ve seen a series of deregulatory measures favouring the industry.

The mainstream banking system may well be safer, but …

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