Rachel Reeves warned by City grandees not to weaken banking safeguards

Chancellor's plan to slash red tape could raise financial risks and do little to help households, say architects of UK's post-2008 reforms

Rachel Reeves has been warned by City grandees that her plan to slash financial red tape could have little benefit for British households while increasing risks in the banking industry.

The chancellor used a speech to City bosses attending the annual Mansion House dinner on Tuesday to argue that in too many areas regulation was acting as a boot on the neck of business", as she pledged sweeping changes to help revive the economy.