NEW banking reforms could unlock up to £80 billion in additional finance for British businesses, the Treasury has said.

Ministers say changes to the UK’s ring-fencing regime will make it easier for major banks to support firms with lending, investment and financial products, while keeping protections for savers in place.

The reforms include a proposed new Growth Allowance, allowing large banks to use part of their balance sheets more flexibly to support businesses looking to expand.

Ring-fencing was introduced after the financial crisis to separate everyday banking services, such as retail and small business deposits, from riskier investment banking activity.

The Treasury says the core protections will remain, with ring-fenced banks continuing to operate separately from investment banking arms.

Economic Secretary to the Treasury and City Minister, Rachel Blake said: “Where financial systems are inefficient, we will change them.

“These reforms will ensure more financing flows into UK businesses, and we can support growth and create jobs across the country.

“This will unlock finance for growth while keeping the UK banking system resilient, competitive and fit for the future.”

The changes are set out in a new report, Safeguarding Stability, Enabling Growth, and will be taken forward through the forthcoming Enhancing Financial Services Bill.

The Prudential Regulation Authority will also be given more flexibility to update and tailor rules over time, rather than relying on detailed legislation.

The government says this should allow outdated requirements to be removed more quickly and help banks respond to changes in the financial system.

Banks may also be able to offer businesses a wider range of products, including improved hedging tools and greater access to programmes delivered through the British Business Bank and the National Wealth Fund.

Alex Depledge, Entrepreneurship Advisor to the Chancellor, said the reforms would help growing firms access capital at the point they need it most.

She said: “Too often, our fastest-growing firms hit a wall of unnecessary friction just as they start to scale.

“These changes will unlock more of the capital founders need to keep building in the UK, while maintaining the financial stability that underpins investor confidence.”

The government will consult on the detail of the changes before implementation.

POLICE are appealing for witnesses after garden tools were stolen from outbuildings in Haverfordwest.

Dyfed-Powys Police said officers are investigating two burglaries at separate addresses in the Haven Road area, following reports made over the last week.

The first burglary is believed to have happened on Monday, May 4, when gardening tools worth around £40 and an electric renovator valued at about £70 were taken.

A second burglary is believed to have taken place sometime between Friday, May 8 and Sunday, May 10. A Bosch hedge trimmer worth around £190 was stolen.

Anyone who saw anything suspicious in Haven Road, or who has CCTV or Ring doorbell footage which may assist the investigation, is asked to contact Dyfed-Powys Police.

Police can be contacted online, by emailing [email protected], by direct message on social media, or by calling 101.

Quote reference: DP-20260510-142.

Consumers using credit cards, loans and overdrafts are set to receive clearer information about costs and key terms under major reforms to the Consumer Credit Act

THE UK GOVERNMENT has announced plans to modernise legislation first passed in 1974, saying the rules no longer reflect the way people use credit in the age of smartphones, online banking and digital finance.

The reforms will move many of the Act’s detailed requirements out of primary legislation and into the Financial Conduct Authority’s rulebook, allowing rules to be updated more quickly as technology and financial products change.

Ministers say the changes will mean people taking out credit cards, personal loans, overdrafts and other borrowing products receive clearer, better-timed information to help them understand costs, compare options and manage repayments.

The Treasury said robust consumer protections would remain in place, with the FCA retaining powers to fine firms that break the rules.

Economic Secretary to the Treasury and City Minister, Rachel Blake said: “People need to be able to make informed choices when applying for and using credit.

“The Consumer Credit Act was written for a different era – we are creating a flexible regime fit for the digital age.”

The reforms form part of the Financial Services Bill announced in the King’s Speech.

Debt charity StepChange welcomed the move, saying clearer information is vital for people struggling with repayments.

Peter Tutton, the charity’s director of policy, research and public affairs, said: “Our thirty years of experience providing free debt advice has shown us just how important clear and usable information about credit agreements is for consumers.

“What’s more, for those struggling with managing credit repayments, it is vital that consumers can make informed choices about products and know how to seek help when it is required.”

Chris Woolard CBE, who chaired The Woolard Review into the unsecured credit market, said modernising the Act was a key recommendation of his review and described the reforms as “welcome”.

UK Finance also backed the announcement, saying lenders needed a simpler and more flexible regime while maintaining strong consumer protection.

The Government has published a policy statement setting out its final approach to Consumer Credit Act reform, alongside its response to the first phase of consultation.