The Guardian view on City deregulation: it would be a dangerous step backward | Editorial

Relaxing financial rules risks undermining stability, ignoring post-crash lessons and prioritising short-term gains over the long-term health of the economy

Rachel Reeves's enthusiasm for the City of London - the crown jewel in our economy" - raises concerns. Economists were worried enough to publicly warn her this month that liberalising financial sector regulations could undermine the government's efforts to grow the economy, posing particular risks to the government's wider industrial strategy". They also stressed the importance of not forgetting the painful lessons of the 2008 global financial crisis.

The experts were responding to the chancellor's November Mansion House speech, in which Ms Reeves suggested that post-crisis regulations have gone too far". This is a troubling statement. Those rules were implemented to curb the sector's excesses, prevent systemic risks and ensure that the Treasury does not have to bail out its failures. Rolling back such measuresin the name of economic growth ignores thestability and protection they've provided.

Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here.