CHANCELLOR Rachel Reeves faced fresh criticism today after claiming that safeguards imposed on the financial sector in the wake of the 2008 crash had “gone too far.”

Signalling lighter-touch regulation of financial firms, she said: “These changes have resulted in a system which sought to eliminate risk-taking.

“That has gone too far and, in places, it has had unintended consequences which we must now address.”

She made the comments as she doubled down on Labour’s stuttering growth agenda during her inaugural Mansion House speech as Chancellor on Thursday night.

Ms Reeves has written to Britain’s City regulators telling them to “fully support this government’s ambitions on economic growth.”

A Momentum spokesman blasted the Chancellor’s stance as “craven and irresponsible,” adding: “In reality, there never was a crackdown on the banks.

“We need fundamental transformation of the economy, not giving big finance more scope to do what it wants.”

Positive Money head of policy and advocacy Simon Youel said: “Rather than deregulation to increase the growth and competitiveness of the City of London for its own sake, the government should focus on ensuring that the financial sector is able to serve the needs of society without crashing the economy again.”

Ms Reeves was also accused of caving in to “lobbying by the industry” by consumer watchdog Which? after she announced a review of the Financial Ombudsman Service.

Director of policy and advocacy Rocio Concha said: “For its financial regulation plans to succeed, the government must look beyond the boardrooms of the City of London and listen to millions of consumers who have been struggling through a painful cost-of-living crisis.

“The Chancellor must ensure they are not further exposed to poor treatment at the hands of the financial sector.”