November 18, 2009

The City is awaiting the latest rules to affect the banking industry, to be unveiled in the Queen's Speech.The speech later will include the long-awaited Financial Services Bill.The bill is likely to give the Financial Services Authority (FSA) the power to void future employment contracts that are deemed too risky.It is also expected to include a Fiscal Responsibility Bill, which would commit the government to halve its budget deficit within four years.

The UK, which now has overall debt of £825bn, is set to borrow a record £175bn over the next two years.The bill may also give more powers to the Financial Services Authority (FSA).But there is still a question as to whether Parliament will have time to pass the bill.There is likely to be about 70 days of parliamentary business before the next general election, which must be held by June.It would depend on whether or not the government considers the bill a priority and fast-tracks it through Parliament.