“The plans we have set out today will further unleash the benefits of Brexit and ensure that businesses can spend more of their money investing, innovating and creating jobs.”

Last year, Chancellor Rishi Sunak voiced his ambition to deregulate the financial sector in order to boost investment.

He said: “We are going on all of those things to deliver the reforms that the industry can now benefit from post-Brexit and make sure this remains the most competitive place in the world for financial services.”

However, the IMF warned in its report that the UK must not stray too far from its commitment to high standards of prudence and good governance.