Bank of England governor Andrew Bailey has blocked Chancellor Rachel Reeves from holding a proposed meeting with financial technology giant Revolut, in a move that underscores growing tensions between the Treasury and Britain’s financial regulators.
The meeting, which would have brought together Revolut, the Treasury, and the Prudential Regulation Authority (PRA)—the Bank of England division responsible for licensing banks—was intended to discuss Revolut’s long-delayed plans to launch full banking operations in the UK. However, it was cancelled at Bailey’s request, over concerns that it could be seen as political interference in the Bank’s independent supervisory role.
The intervention, first reported by the Financial Times, is the latest sign of friction between the new Labour government’s pro-growth agenda and the cautious stance of regulators.
Reeves has made loosening regulatory constraints a central part of her strategy to stimulate the UK economy. In a high-profile speech at the Mansion House earlier this month, she claimed that in many areas, regulation “acts as a boot on the neck of businesses,” and urged regulators to adopt a more enabling approach to encourage investment and innovation.
Bailey has publicly pushed back. Asked about Reeves’s remarks during a session of the Commons Treasury Committee, the governor said: “I don’t use those terms, let me say that,” and warned: “We cannot compromise on basic financial stability.”
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