What is the Mansion House speech – and why does it matter to you?

The chancellor will deliver her second Mansion House speech this evening (15 July), when she is expected to launch the government’s long-awaited pensions adequacy review.

Pension contribution rates could form part of the review in an effort to boost savers’ retirement pots.

The minimum contribution under auto-enrolment rules is currently 8% of employees’ eligible earnings with 3% coming from employers, however experts believe this is not enough for a comfortable retirement.

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As well as workplace pensions, the review is expected to focus on the state pension and retirement savings among the self-employed.

Rachel Vahey, head of public policy at AJ Bell, comments: “After a bruising few weeks, the chancellor will be hoping to reset the agenda at the Mansion House speech, likely turning her attention to pensions again and trying to persuade voters this government can plot a path towards a more prosperous retirement for millions of Brits.”

Further details on a rumoured cut to the cash ISA limit had also been expected in the speech, but reports now suggest Reeves will delay cash ISA reform after backlash from consumers, banks and building societies.

The rationale behind a cut (possibly to as low as £4,000 or £5,000) was to encourage more people to invest in the UK stock market.

Reeves is still likely to promote this goal during her speech, but rather than a cash ISA cut, she is expected to announce a campaign to educate the public about the merits of investing.

On a separate note, the chancellor is also expected to announce plans to loosen financial regulation. This could include reforms to the senior managers and certification regime – a set of accountability rules introduced after the Global Financial Crisis.

The rules hold senior managers responsible for regulatory breaches in their area of responsibility, if they have failed to uphold their duties. They can sometimes be liable even if they were not personally involved or implicated.

Some in the City argue the rules have become too burdensome. Reeves will set out plans to cut the burden of the regime by half, according to the Financial Times. This could include making it quicker and easier to appoint senior managers.

Reports also suggest Reeves will reiterate her fiscal rules during the speech, telling industry participants that she will not put the UK’s economic stability at risk. The current rules mean the chancellor cannot borrow to fund day-to-day spending, and that she must have debt falling as a proportion of GDP by 2029/30.

Reeves has come under pressure to loosen the rules in recent weeks, as high borrowing costs, weak economic growth and series of policy U-turns have made tax hikes more likely this autumn.

What is a Mansion House speech?

The Mansion House speech is an annual address given by the chancellor. Last year, Reeves delivered her inaugural address on 14 November.

The speech takes place at Mansion House in London, which is the official residence of the City of London’s Lord Mayor. Historically, it has been delivered to a room full of senior bankers and company bosses at the Annual Financial and Professional Services Dinner.

The speech is often used to sketch out future plans for the industry and is closely watched for clues on the government's next steps on regulation.

Last year, Reeves announced plans to merge the UK’s 86 local government pension schemes into more efficient megafunds.

She also spoke about addressing a culture of excessive risk aversion, and wrote to regulators after the speech to ensure a greater focus on supporting economic growth in their remits.

What could Reeves announce in the 2025 Mansion House speech?

The pensions adequacy review is likely to be a major feature of the Mansion House speech this year.

Pensions have been a big focus for the government since its election win, with Reeves looking to boost savers’ readiness for retirement while also using pensions as an engine for economic growth.

A pensions investment review has already been conducted, concluding earlier this year. The review focused on tackling fragmentation in the pensions market, and boosting investment in productive assets like infrastructure and private equity.

The government will turn its attention to retirement adequacy next, as it seeks to address systemic issues that mean millions are under-saving for retirement.

Timescales are unclear but pensions minister Torsten Bell has said auto-enrolment rates will not rise this parliament, suggesting any reforms could take place over the longer term.

The review could also look at the state pension, which has become increasingly expensive in recent years thanks to an ageing population and the state pension triple lock. The government has promised to keep the triple lock for the rest of this parliament, though, meaning it looks safe for now.

We can also expect to hear more about how the government plans to direct more money away from cash savings and into the stock market. While a reduction in the cash ISA limit seems to be off the cards for the time being, the chancellor is expected to outline other ways of boosting Britain’s stock market.

Reeves could look to achieve this through a public campaign that dispels some of the myths about investing – part of a cultural shift to get cash savers putting their money in UK companies.

The push will come after the Financial Conduct Authority (FCA) revealed “once in a generation” advice changes last month. The shift could result in millions more people getting help managing their money without having to pay for regulated advice.

City bosses are also urging Reeves to focus on cutting the cost of investing, namely removing stamp duty when shares are bought.

Business lobby group CBI, investment platforms including Hargreaves Lansdown and Interactive Investor, and business leaders from Shell, HSBC and AstraZeneca are calling for “bold action” to bolster the London Stock Exchange as a global capital markets hub.

They want the government to abolish the 0.5% tax on shares. However, this seems to be a wish list from the industry, and there are no signs the government is considering the move – not least because it will cost billions of pounds a year.

Finally, Reeves is expected to set out the government’s financial services growth and competitiveness strategy during her speech. This will involve “building on our strengths in areas including capital markets, insurance and asset management,” Reeves told industry participants at a conference in April.

The strategy will also focus on “supporting firms to innovate by ensuring they can access and develop the talent they need, and promoting the UK as a great place to do business globally”.