Liz Truss to set economic plans for finance sector to lead Britain

By Andrew MacAskill and Carolyn Cohn

LONDON (Reuters) – Liz Truss, the favorite to be Britain’s next prime minister, will outline her economic plans on Friday to fund those responsible for the sector, including scrapping legacy EU laws by the end of 2023. The business minister Truss faces former minister Rishi Sunak to collect the votes of 200,000 members of the Conservative Party who will choose by September 5 a replacement for Boris Johnson, forced to resign after a series of scandals.

His meeting with finance bosses will take place at Aviva’s offices in London and attendees will include Legal & General chief executive Nigel Wilson and Aviva chief executive Amanda Blanc, two sources told Reuters.

Truss will set out its agenda for attracting new investment, including reforming the regulatory regimes known as Solvency II and MiFID which Britain introduced when it was a member of the European Union.

“For too long, we have allowed those who create wealth and high-quality jobs – dynamic companies and hard workers – to be burdened with heavy EU bureaucracy,” Truss said in a statement. before the meeting.

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“We have not acted fast enough to take full advantage of Brexit. I will make this a priority to cut EU red tape and ensure we have the right tools to attract investment and generate growth .”

The Bank of England warned on Thursday that Britain faces a long recession as energy-price-driven inflation squeezes household budgets. Tackling this crisis and maintaining business confidence in the UK economy will fall to either Truss or Sunak in a month.

Britain’s financial sector, one of its biggest tax-producing industries, was cut off from parts of the EU after Brexit and the government is already reviewing rules inherited from the bloc amid calls from banks to place greater emphasis on maintaining the City of London’s global competitiveness. .

But bankers say there is no appetite for a “regulatory bonfire” given that big changes cost money and can take years.

They have called for tax cuts on bank balance sheets since the financial crisis and want to make it easier to hire talent around the world now that unfettered access to hiring EU nationals has ended.

Truss said she will set up a group of business leaders to shape or recommend suppression rules to make the industry more competitive and help consumers.

(Reporting by Andrew MacAskill and Carolyn Cohn; Editing by William James and Alexander Smith)

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