UK chancellor Rachel Reeves delivered her Mansion House speech last night with a financial services shake up at its core.

In her speech, she promised an overhaul of financial services with a promise of a better returns on savings as well as fully implementing the Pension Reform Bill, which was first introduced in her last Mansion House speech. However there was no firm details on potential widespread changes to ISAs as was expected.

Rachel Reeves unveiled the Leeds Reforms aimed at ‘unlocking retail investment’ as part of her Mansion House speech and committed UK government to ISA reform aimed at boosting retail investing but only the inclusion of Long-Term Asset Funds (LTAFs) in Stocks and Shares ISAs was announced.

Among the reforms, banks will ‘send investment opportunities’ to savers in low-interest accounts. Industry-led ad campaigns will help promote the benefits of long-term investing.

Reeves said: "We have been bold in regulating for growth in financial services and I have been clear on the benefits that that will drive with a ripple effect felt right across all sectors of our economy putting pounds in the pockets of working people. Getting better deals on their mortgages, better returns on their savings and more jobs paying good wages across our country

Regulation

Reeves also called for regulation to be be arm but not too excessive as to thwart industry and firmly pointed a finger at the Financial Services Authority (FCA) to remove "the boot on the neck of businesses choking off the enterprise and innovation",

"As I look ahead it is clear that we must do more," she said. " In too many areas, regulation still acts as a boot on the neck of businesses choking off the enterprise and innovation that is the lifeblood of economic growth. Regulators in other sectors must take up the call I make this evening not to bend to the temptation of excessive caution but to boldly regulate for growth in the service of prosperity for our whole country.

Click here to see a transcript of Reeves full speech.

The industry reacted with a general positive tone.

Keith Phillips, Chief Executive, The Platforms Association, said: “We welcome today’s Mansion House speech and the publication of the Financial Services Competitiveness & Growth Strategy. Investment platforms play a crucial role in building and encouraging a strong retail investment culture. The UK investment platforms sectorhas grown exponentially over the past twenty years with almost £1.4trn assets under administration and is a real success story for UK financial services.

"While the risk appetite of every investor is different with cash savings playing an important role for savers young and old, we support the Government’s ambition to encourage long-term saving and understanding how people’s savings and investments are being deployed. The proposed ‘Tell Sid’ campaign will be a helpful reminder and starting point for many new investors.

"The recently published FCA targeted support reform is a step change in improving advice and guidance for retail investors and structural changes to the Innovative Finance ISA will allow investors to access other long term investment options.”

Dr Andrew Williamson, Managing Partner at Cambridge Innovation Capital, said:  "The reforms put forward by the Chancellor at Mansion Househave the potential to supercharge the UK’s £10bn science and technology ecosystem, provided they are implemented correctly. The growing commercial maturity of Britain’s technology companies provides a robust and accessible route into long-term, risk-adjusted returns for institutional capital.
"US and Canadian pension funds have benefited from this strategy, and the UK is now poised to capitalise on this generational opportunity. The Chancellor’s reforms rightly aim to align the long-term horizons of the pension and venture capital industries, which will help to unlock capital for long-term innovation while strengthening future pension outcomes for savers."
AJ Bell CEO, Michael Summersgill, said: "Kickstarting an investing revolution could boost household finances and UK capital markets in the process. With at least £100bn sat in Cash ISA accounts held by savers with £20,000 or more in cash but no ISA investments, there is a huge prize at stake if government gets this right.

“Crucially, government must recognise that this can’t be achieved by diktat. It may be tempting to try and marshal ISA contributions through rules and regulations – such as mandatory quotas on UK assets or restrictions on cash contributions. But this simply won’t work.

“Government should start from scratch on the best design of the ISA system. Endless tinkering has left consumers facing a myriad of divisive choices, with many simply opting for the easy choice: cash.

“Instead, a simpler system with a single ISA account would allow consumers to glide between saving and investing seamlessly. Removing friction between cash and investment accounts would create a more flexible system, lifting the psychological barrier between  saving and the stock market.”

AJ Bell director of public policy, Tom Selby, added: “The announcement from the chancellor sends a clear message: we need to get Britain investing.

“ISAs are clearly seen as a crucial route through which to get the public investing for the long-term, helping boost their household finances and support capital markets in the process.

“The devil is in the detail, however, and there still isn’t much of that to get stuck into. For months rumours have suggested the government may look to cut the cash ISA allowance in the hope that a whack-a-mole approach will see some of that excess cash pop up in stock market investments.

“Thankfully, that idea appears to have been shelved, at least for now. Instead, we need to start from scratch when it comes to ISA reform. ISAs are enormously popular, but over time the landscape has become increasingly complex, with multiple different ISAs each with their own rules and regulations.

“A starting point on the road toward simplification should involve merging Cash and Stocks and Shares ISAs, ending the arbitrary distinction between the two to create a unified ISA product serving the needs of the vast majority of ordinary people.

Steven Levin, CEO of Quilter, said: "The Chancellor’s Mansion House reforms aim to deliver a financial system that helps working people grow their savings, channels more capital into UK businesses, and ensures financial services play a leading role in driving economic growth. These are all valiant aims that signal a welcome shift toward long-term, productive investment becoming a default rather than a specialist activity.
"The push to encourage investment through nudges and a national campaign reflects a clear intent to reshape behaviour at scale. The government is laying the groundwork for more inclusive financial participation.
"The planned rollout of targeted support by ISA season 2026 could help millions who are willing to invest and currently falling into the advice gap. Giving firms the ability to offer more tailored guidance while maintaining appropriate safeguards has the potential to improve outcomes, particularly around pensions and first-time investing.
"However, the devil is in the detail. For firms to follow up meaningfully with consumers, clarity on marketing permissions is essential. Current restrictions under PECR can make this difficult unless customers have proactively opted in. It’s encouraging that the government reiterated this issue in its targeted support policy statement today, addressing this potential barrier is a crucial step toward making the reforms effective in practice.
"While behaviour won’t shift overnight, success will depend not just on unlocking capital but on building lasting confidence. That means ensuring consumers have access to clear, trustworthy support at every stage of their financial journey. Improving financial education in schools should also be a long-term priority to help nurture a UK investment culture. It could be instrumental in helping the next generation grow up with the confidence and knowledge to become the investors of tomorrow."