Mini Budget 22: Government to 'scrap' Solvency II to boost investment

Chancellor says replacing EU law with rules ‘tailor made for the UK’ will free up billions

Jonathan Stapleton
clock • 1 min read
Kwasi Kwarteng. Image: Andrew Parsons/Number 10
Image:

Kwasi Kwarteng. Image: Andrew Parsons/Number 10

The government will replace Solvency II regulations with “rules tailor made for the UK” in a bid to free up billions of pounds of investment, Kwasi Kwarteng has announced.

In the HM Treasury Growth Plan 2022 - released as part of the Mini Budget today - the chancellor said the financial services sector would be at the heart of the government's programme for driving growth across the whole economy.

The plan said that, later this autumn, the government would "bring forward an ambitious deregulatory package to unleash the potential of the UK financial services sector".

It said this would include the government plan for repealing EU law for financial services and replacing it with rules tailor made for the UK, and "scrapping EU rules from Solvency II" to free up billions of pounds for investment.

Solvency II is the EU directive that sets out regulatory requirements for insurance firms, including pension buy-in and buyout providers. It covers areas such as financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure. It came into force at the beginning of 2016.

More on Law and Regulation

Pension transfer reform risks falling short without alignment

Pension transfer reform risks falling short without alignment

Patrick Heath-Lay says outcomes for savers could improve if regulators act together

Patrick Heath-Lay
clock 13 February 2026 • 4 min read
Why we need system-wide reforms to modernise how pension transfers work

Why we need system-wide reforms to modernise how pension transfers work

Lisa Picardo calls for reforms including a 10-day ‘Pension Switch Guarantee’

Lisa Picardo
clock 12 February 2026 • 5 min read
CDC beyond the headlines – a focus on intergenerational risk transfer

CDC beyond the headlines – a focus on intergenerational risk transfer

John Southall says CDC’s success will depend on how intergenerational fairness is treated

John Southall
clock 10 February 2026 • 7 min read
Trustpilot