George Osborne is set to call an end to so-called banker bashing in a speech at Mansion House next week.
The chancellor’s speech is seen as something of an olive branch to the City, after he laid out an election pledge to raise the bank levy.
Read more: Bank levy here to stay forever, says Osborne
Banker’s want to see an easing of regulation after an increase in red tape following the financial crisis. Osborne is aiming to sound a conciliatory tone with bankers and draw a line under years of increased control. The chancellor will seek to reassure the City that the target is now stability, not unnecessary restriction.
The speech is unlikely to be enough to garner favour among the whole City, given Osborne will defend his decision to raise the bank levy. Many bankers would like to see an end to government ring-fencing – the erection of firewalls between retail and investment operations.
This week, the British Bankers’ Association wrote a letter to the chancellor asking for a review of bank taxes. The government says that ring-fencing is necessary and that the levy is both proportionate and fair.
According to the Financial Times, allies of Osborne have said that the chancellor believes some tax and regulation may have been excessive, but that it was a politically necessary measure. Now with the election won and a majority obtained, there is more freedom for change.