Banking reform does not go far enough says EEF

EEF chief economist Lee Hopley said the Chancellor's call for more banks on the High Street and actions to open up the payments system to new competitors as part of re-setting the UK banking system was welcome. "A lack of choice within and beyond the High Street is an important supply-side factor holding back lending to business in the UK," she went on. However, she believed that the government should be going further by looking at more options "to vigorously shake up the competitive landscape". Pointing out that just four banks held 85% of business current accounts as opposed to 75% in the personal account sector, she said further reforms should include: full account number portability, making licensing arrangements for new banks easier, and using its new business bank to bring more choice into the market. "Increasing competition must not be an afterthought to structural reforms to UK banking, important though these reforms are," Hopley concluded.