The Conservatives' plan for reform of financial regulation has much to commend it. To be sure, it will have to be tweaked when (if) they form the next government, but it serves as an excellent foundation.

Of course, it is good politics to blame the regulatory arrangements set up by Labour and probably politically essential to commit to abolish them. But that does not take away from the merits of the proposals themselves. Four stand out.

First, it at least attempts to measure up to the scale of