<h1>UK Treasury plans major financial deregulation to boost growth amid economic contraction</h1> The UK Treasury chief announced plans to slash financial services regulations to stimulate economic growth after the economy contracted for two consecutive months. The reforms include paring back post-2008 financial crisis regulations, modifying bank ring-fencing rules, and reviewing capital requirements for banks. New Bank of England guidance will allow mortgage lenders to loan more than 4.5 times a buyer's income. The government has faced challenges with costly policy reversals, including ending winter heating subsidies for retirees and scrapping planned welfare cuts, reducing Treasury income by billions and potentially necessitating tax increases.