The government has announced what it describes as one of the biggest overhauls of financial regulation for more than three decades.

It says the package of more than 30 reforms will “cut red tape” and “turbocharge growth”.

Rules that forced banks to legally separate retail banking from riskier investment operations will be reviewed.

Those were introduced after the 2008 financial crisis when some banks faced collapse.ADVERTISEMENT

The package of changes, the “Edinburgh Reforms”, is being presented as an example of post-Brexit freedom to tailor regulation specifically to the needs and strengths of the UK economy.

However, critics say it risks forgetting the lessons of the financial crisis.

Between 2007 and 2009 the then-Labour government spent £137bn of public money to bail out banks.

Overall, taxpayers have lost £36.4bn on those bailouts, according to the latest estimate from independent forecaster the Office for Budget Responsibility.