Lucy Rigby Takes Charge: Can She Revitalize the City?

Lucy Rigby has been appointed as the new Economic Secretary to the Treasury, stepping into a pivotal role for the City of London. Her appointment comes as part of a cabinet reshuffle that saw Emma Reynolds transition to the position of Environment Secretary. Rigby, a former barrister and MP for Northampton North, is now tasked with navigating complex economic challenges and fostering business growth in a dynamic financial landscape.

Before her appointment, Rigby held the position of Solicitor General, where she gained recognition for her strong advocacy for consumer rights. Her rapid ascent within the Labour Party, marked by her winning the seat with nearly 44 percent of the vote in 2024, has drawn attention from political analysts. Commentators noted that her rise is one of the fastest seen in recent political history, with some lobbyists suggesting that it surpasses typical trajectories in Westminster.

As she steps into this new role, Rigby faces criticism that resonates throughout the Labour Party: a perceived lack of real business experience among its ministers. While her background includes significant legal expertise as a former partner at the prestigious City law firm Slaughter and May, her time in the legal field has raised questions about her direct engagement with business operations. Nevertheless, her tenure at Slaughter and May and her subsequent roles as a competition lawyer at the Office of Fair Trading and as a consumer law advisor at Which? have equipped her with a solid understanding of business dynamics.

Class Actions and Legal Landscape

Rigby’s legal career has prominently featured her involvement in the rise of class actions in the UK. This legal mechanism, which allows groups of individuals to collectively file lawsuits, has gained traction in recent years, particularly since the introduction of legislation in 2015 that established an opt-out regime for competition law violations. The Competition Appeal Tribunal (CAT) has become increasingly busy as a result, with the total value of class action cases in the UK surpassing €155 billion (approximately £135 billion) in 2024.

During her time at Hausfeld, where she became a partner in 2021, Rigby specialized in collective claims, including a notable £480 million consumer claim against Qualcomm on behalf of Which?. The trend of class actions has stirred mixed feelings among businesses, which face significant legal costs and lengthy procedures. A report from the Adam Smith Institute indicated that these developments are undermining trust in both businesses and the legal environment.

With Rigby now in a position of influence, some industry insiders have expressed hope that she can bridge the gap between consumer advocacy and business interests. A source told City AM that her role could be crucial, especially as Labour’s New Deal for Working People promises expanded collective bargaining rights that might further entrench class action mechanisms in the UK.

Priorities and Future Outlook

In her initial days as Economic Secretary, Rigby has indicated a commitment to enhancing the UK’s position as a financial services powerhouse. Her agenda includes implementing a financial services growth strategy aimed at improving resilience and creating skilled jobs across the country. Rigby has already prioritized meetings with significant stakeholders, including Paul Atkins, chairman of the U.S. Securities and Exchange Commission, and representatives from the UK’s largest lenders, focusing on fostering innovation in the mortgage market and helping first-time buyers.

As she navigates her responsibilities, the challenge remains for Rigby to balance the interests of consumers and businesses. Her ability to drive investment in the City while advocating for consumer rights will be closely watched by stakeholders in the Square Mile. The future of her tenure will likely depend on how effectively she can manage these competing interests and deliver tangible outcomes for both sectors. With the City looking for direction, all eyes will be on Rigby as she embarks on this critical phase of her political career.