A shake-up of financial rules is set to make it easier for investors to back smaller companies and will encourage those not yet saving to put their money to work in the stock market.
The reforms are part of the Financial Services Growth and Competitiveness sector plan set out by chancellor Rachel Reeves this morning.
Reeves outlined the reforms at a summit of top finance executives in Leeds ahead of her Mansion House speech.
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Known as the Leeds Reforms, the plans include aims to make it easier for banks to encourage those with cash sitting in low interest accounts to invest instead.
Reeves also confirmed a review of ISA rules to “achieve the right balance between cash savings and investment".
Meanwhile, the Financial Conduct Authority (FCA) has unveiled a shake-up of capital markets rules to make it easier for firms to raise more cash and for investors to back them.
Here is what the changes mean for you.
Encouraging investment
The Treasury has warned that the UK has the lowest level of retail investment among G7 countries, meaning savers are not getting the best returns and UK businesses are starved of an important source of capital.
An industry-led advertising campaign will help explain the benefits of investing, and from April 2026 the FCA will roll out targeted support – letting banks alert customers about specific investment opportunities to consider shifting money from a low-return current accounts to higher-performing stocks and shares investments.
There will also be a review of risk warnings on investment products to make sure they help people to accurately judge risk levels.
The Treasury also confirmed plans to consider reforms to ISAs and savings as it seeks to encourage more investment.
As a first step, Long Term Asset Funds will be allowed to be held in stocks and shares ISAs from next year, which the Treasury said would “allow more individuals to invest in assets that will support the UK’s future success, like innovative businesses and infrastructure".
Viktor Nebehaj, chief executive of investing app Freetrade, has backed the changes.
He said: “By empowering retail savers – whether they're contributing to ISAs, pensions or simply starting small – this announcement underscores the value of patience, education, and broad participation in wealth-building.
“We welcome this milestone and remain committed to delivering tools and insights that help everyday investors secure their financial futures.”
Cutting red tape to boost growth
The Treasury has launched a new concierge service within the Office for Investment to actively court international financial services companies to the UK.
Additionally, the FCA has revealed new rules that aim to lower costs for companies raising cash and widen access to investment opportunities for consumers.
Under the shake-up, the threshold for when a prospectus is required for a listed company to raise more shares has increased to 75% of existing share capital, up from its current 20% level.
Initial public offerings (IPOs) that include the wider public can come to market three days after the publication of their prospectus, replacing the previous six-day window and removing barriers to retail access, the FCA said.
The FCA has also set up a new platform for public offers to make it easier for growth companies to get the investment they need and increase opportunities for investors.
It will let companies make larger offers of shares or bonds to investors without a lengthy prospectus, when the target is above £5 million.
The move comes amid concerns about listed firms leaving the London Stock Exchange and others choosing to list in New York.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “By fostering a retail investment culture and making UK markets a more attractive place for listings, it will help build a more dynamic and equitable financial ecosystem.
"It’s still not going to be easy to compete against the might of New York, but with continued collaboration across the industry, these changes should provide more fuel to power an engine of growth and innovation.”
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