Here we go again. In a speech shortly before the financial crisis, Ed Balls, an adviser to Gordon Brown and at that time the Labour minister responsible for the City, repeatedly referred to “light touch regulation” as being key to the City’s success as a financial centre.

Chancellor tells the City she is “clear that the financial services sector must play a central part in our economic vision and our plan for economic growth. “

I’ll ease banking regulations - Chancellor pledges to lift banking regulations to boost growth as she launches fightback against criticism of her Budget

The Chancellor, in her first Mansion House speech tonight, will say rule changes in the wake of the global banking meltdown were 'right'.