New UK PM Burnham to stick with City-friendly agenda, person familiar with the matter says

(Refiles to give former finance minister Rachel Reeves’ full name on first reference)

By Andy Bruce

LONDON, July 24 (Reuters) - Britain's new government under Prime Minister Andy Burnham intends to preserve the previous administration's pro-growth approach to the financial services sector including regulation, according to a person familiar with the matter.

The government will keep pushing the Financial Services Growth and Competitiveness Strategy — the pro-City agenda set out by Keir Starmer's team — and a reform bill making its way through parliament, the person said.

New finance minister John Healey has retained several Treasury ministers who served under his predecessor Rachel Reeves. The person described that as a signal of continuity of purpose on financial services.

Shifting the emphasis of financial services regulation towards encouraging economic growth rather than simply containing risk was a key policy of Reeves.

Last year, Reeves announced measures intended to boost the finance sector, including changes to requirements for banks to separate retail and investment banking activities and a plan to get more savers investing in stocks.

“Continuity on the financial services growth agenda will be welcomed by banks, particularly after a period of political change and market uncertainty," said Steve Payne, head of banking for KPMG UK and Switzerland.

"Our latest research shows that financial services leaders remain broadly confident in the government’s strategy, but confidence has softened where regulatory reform is concerned," Payne added.

The UK Finance industry association said the government's regulatory reforms would bolster the financial sector's ability to support Britain's economy.

"We look forward to working with the new government to help deliver that agenda," a spokesperson said.

(Additional reporting by Lawrence White; Editing by Hugh Lawson)