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Labour proposes new council for financial stability

Published on 15 Apr 2010 under category: legal

Labour has pledged new powers for the financial services watchdog, through the creation of a new council for financial stability.

The proposal is one among many to transform its now troubled relationship with business.

More powers would be given to the Financial Services Authority to monitor executive bonuses and salaries, if they threatened "risk or instability" to company finances.

The manifesto pledged to make Labour the 'party of enterprise' once again, with a raft of measures intended to restore competition to the sluggish economy.

A fund from public and private money called the UK Finance for Growth Fund will be created.

It will have one offshoot dedicated to small businesses called the Capital Growth Fund, which will support small and medium sized businesses and a second part solely for high-tech firms.

In addition, businesses have been told they can expect to benefit from the cutting back of regulation, which Labour estimates will save UK business around £6 billion annually.

The party also pledged to keep its Time to Pay initiative going, the ending of which many industry experts fear will result in a "lag effect" in insolvencies after the recession.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.