Treasury Committee member Bobby Dean has sharply criticized Chancellor Rachel Reeves’s intervention in the recent Supreme Court car finance case. Dean called Reeves’s attempt to limit compensation for borrowers “unprecedented and disgraceful,” accusing her of favoring the financial industry over consumers. Despite the Chancellor’s efforts, her attempt to influence the judges was unsuccessful. Dean’s condemnation highlights a growing concern about the government’s alignment with corporate interests.
The Supreme Court’s ruling ultimately favored lenders, saving them from a staggering £44 billion compensation payout. However, Dean’s criticism is not about the outcome but the principle of the Chancellor’s actions. He stated that the government’s readiness to “intervene and defend the industry that’s done wrong, instead of defending the consumer” sends a harmful message. This action, he argues, undermines public trust in the government’s commitment to protecting its citizens.
Reeves’s move came after intense pressure from the car loan industry and City bosses. The Financing and Leasing Association (FLA) had warned that a massive compensation bill could threaten the stability of financial firms and lead to a reduction in credit options. These industry warnings were supported by broader fears that the legal uncertainty was damaging the UK’s reputation as a stable place for international investment.
Dean, however, warns against using potential industry damage as an excuse to interfere in consumer protection cases. He stresses that a fair and effective consumer protection framework is essential for maintaining market confidence. This, he believes, allows people to borrow and invest with confidence, secure in the knowledge that they are shielded from corporate misconduct.