THE CITY’S top two regulators have ditched plans to bring in diversity, equity and inclusion rules in the latest sign of the death of DEI in a post-Trump world.
It was announced in a bonfire of red tape yesterday along with:
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- The Financial Conduct Authority (FCA) axing its controversial proposals to “name and shame” firms under investigation.
- The Payments System Regulator being scrapped after ministers asked if we had too many watchdogs.
- The Competition and Markets Authority consulting on its merger rules and saying only “truly problematic” deals would be blocked.
The series of shake-ups is a sign that regulators have been put on notice by the Government’s order that they should play a greater role in fostering growth.
Chancellor Rachel Reeves has previously accused the system of “excessively focusing on risk”.
The Bank of England’s regulatory arm, the Prudential Regulation Arm (PRA) and the FCA both said they would stop work on new diversity and inclusion rules.
They would have hit all companies with more than 251 employees.
Sam Wood at the PRA said the decision was driven by “reducing regulatory burdens”.
Delighted Tory leader Kemi Badenoch said: “Thank goodness.
“Giving something the label ‘DEI’ doesn’t mean it’s a good idea.
“This was another example of a quango stepping outside its lane.”
Miles Celic OBE, chief exec of finance body TheCityUK, welcomed the move but insisted: “Our industry is committed to ensure it reflects the communities it serves.”
Consulting firm Accenture is among big firms who have already scrapped DEI targets following Donald Trump’s election as US President.
British defence firm BAE has also removed bonuses for bosses over inclusion targets.
BIZ BRAINS TAPPED
THE Government has reacted to criticism that is does not “get business” by backing a revamped Board of Trade that includes Allison Kirkby, the boss of FTSE 100 telecoms giant BT.
Paul Lindley, founder of Ella’s Kitchen baby food, and The Apprentice interviewer Mike Soutar are also involved.
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Business and Trade Secretary Jonathan Reynolds told The Sun in the autumn that business councils were tokenistic.
But the backlash to the Budget and the increasingly unstable trading environment in the era of tariffs has prompted a rethink.
He said: “This won’t be a chin-stroking talking shop because I’ll be urging them to boost exports.”
The Board of Trade also includes BAE defence chief Charles Woodburn, UnitedHealth exec Dame Vivian Hunt, CISCO’s Sarah Walker, SMMT car expert Mike Hawes, Small Business Britain’s Michelle Ovens, EY finance boss Omar Ali and City expert Catherine McGuinness.
Their opening task will be to answer Mr Reynolds’ call for evidence on the struggles small firms face in raising finance and beating barriers to growth.
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PUMA KICKS BACK
TRAINERS brand Puma yesterday warned tariffs and “trade disputes” are hitting demand in key markets.
The sportswear group — which has collaborations with singers Dua Lipa and Rihanna — is betting on its new retro-style Speedcat shoe to reboot its sales.
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Its shares yesterday tumbled by almost a quarter — after it warned investors sales and profits would be lower as geopolitical tensions grow.
Puma reduced its imports from China to the US and shifted production to other countries to avoid fresh tariffs triggered by President Donald Trump’s moves.
Its shares hit their lowest level in nine years after it said earnings could fall to £375million — £205million below analyst forecasts.
Puma said it would cut 500 jobs.
CLOTHES SLOW HIT
THE owner of Zara has spooked investors with a slowdown in sales growth since the start of the year.
Inditex yesterday toasted record annual profits of £4.9billion, while its annual sales rose by 7.5 per cent to £31.9billion.
However, shares in the retail powerhouse slumped by 7.5 per cent yesterday after it said sales growth had slowed to 4 per cent, compared with 11 per cent for the same time in 2024.
‘45 DAYS’ WILL KEEP GYMS FIT
NEW fitness club joiners who can stick to their goals for the first 45 days tend to stay as members long term, the boss of The Gym Group says.
That is the point at which their habit is formed and they do not cancel subscriptions, allowing the company to keep making money.
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Chief executive Will Orr revealed the group is now using behavioural science to keep new starters onboard in those early days.
They are sent tips to help them set achievable targets.
The strategy is how The Gym Group has defied the wider gloom — yesterday reporting an 11 per cent rise in revenues and a swing into the black with £2.5million profit.
The firm plans to add 50 more gyms to its current 245 sites over the next three years.
Mr Orr is also calling on the Government to improve Britain’s health by getting more GPs to prescribe day gym passes on the NHS.
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