Chancellor’s Mansion House speech – are we going back to the nineties?
There has been a resurgence of 1990s nostalgia recently as Oasis perform their sold-out concerts across the UK. Yet, as we dig out our bucket hats and Britpop playlists, it’s worth reminding ourselves that not all aspects of the 1990s are worth revisiting—with some banks and lenders pushing products that were poorly understood by consumers. The lessons of that era led to waves of reform and stricter regulation in the decades that followed.
18th July 2025
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Gavin Jones See profile
On Tuesday, Chancellor Rachel Reeves delivered her Mansion House speech, an annual event where announcements on financial and tax reform are traditionally unveiled. This year the Leeds Reforms were proposed; a package aimed at reshaping the UK’s financial and banking landscape. These include:
- Improving returns on cash in account with low interest rates
- Allowing new innovative ‘Long-Term Asset” investment funds in stocks and shares Individual Savings Accounts (ISA)
The Chancellor emphasised the importance of financial services and people getting more out of the money they’re putting aside for the future.
The reforms seek to move cash in low interest rate accounts into investments with higher potential returns.
It was widely speculated that the Chancellor would announce a reduction in the Cash ISA limit at the speech. This did not happen but she did say the government is considering further changes to ISAs. Rumours had suggested that the limit was in for a cut to £4,000 each year, down from the current £20,000.
Long-Term Asset Funds (LTAFs) are investment vehicles designed to provide access to assets that require longer investment horizons—such as infrastructure and commercial property—while remaining suitable for a wide range of investors. Although these funds have been around for many years, they have not been popular. The announcement that they will be allowed as a stocks and shares ISA investment may change that.
On the face of it the reforms make sense, but the devil is always in the detail. Alongside the speech there will also be changes in financial services regulation from the beginning of next year so that ‘targeted support’ – a new form of financial guidance can be given by institutions, like banks to help those wishing to invest make informed decisions.
While we fully support the sentiment of investing money that will be held for the long term, the perfect storm of a government urging people to invest cash, potentially into new untested funds alongside new rules that may encourage investment without fully considering individual circumstances is worrying. We would certainly urge caution that these reforms do not unravel the very safeguards put in place since the financial crises of the 1990s and 2000s.
Whether to save or invest may be the wrong question. Financial planning considers your long term aspirations weighing up cash against the level of investment risk, protecting against unplanned events and when/whether to help your family/friends or charitable giving. Speak to your usual Old Mill contact if you would like a no obligation meeting with one of our financial planners, get in touch.