Govt to halve budget deficit
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The Government will vow to halve its budget deficit by 2014 under proposals to be announced in the Queens Speech later today.
It is understood that Gordon Brown will unveil plans to cut Government’s £175bn budget deficit by 2014, and balance the books by 2018.
Other measures to be set out in the speech will also include free social care for the most needy and enhanced powers for the Financial Services Authority to clamp down on reckless behaviour in the financial markets.
Earlier this week, Moneymarketing.co.uk reported that the FSA is expected to be given more power to tackle excessive bank bonuses and financial wrongdoing.
The measures are part of a broader financial services bill set to apply to all UK banks.
The regulator will also be given powers to discipline individuals who perform key control functions without the necessary approval, rather than just fining the company involved. To avoid putting the financial system at risk, banks will also be required to hold larger capital reserves to ensure they can be wound up in the event of failure.
The new rules will come into effect next year if the Financial Services Bill passes through Parliament before the election.
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