For over 800 years, the UK’s financial decisions were solely in the hands of men. This changed on July 4th when Rachel Reeves became the first woman to hold the position of Chancellor of the Exchequer under the new Labour government. This milestone was hailed as a historic moment for women and girls, inspiring many. However, women working in finance are expressing a sense of frustration alongside the inspiration. They argue that the UK having its first female Treasurer shouldn’t be a headline-grabbing event in 2024.
Amy Rushby, co-founder of car finance app Carmoola, emphasizes that women have repeatedly demonstrated their capabilities and achievements in all sectors, including finance. Sarah Beale, CEO of the Association of Accounting Technicians (AAT), shares this sentiment, stating that the Chancellor’s gender shouldn’t be the focus. She highlights the significant progress made by women in finance, noting that 57% of AAT members are women. While celebrating this progress, she points out that we’re nearly a quarter of the way through the 21st century, and the gender of the Chancellor being news is disheartening.
This isn’t to say that women in finance aren’t pleased to see a female Chancellor. Many have voiced their excitement and acknowledged the significance of this moment. However, they recognize that it’s not the end of the journey. There’s still much work to be done to achieve true equality within the industry.
Despite the increasing number of women in finance, the sector is still grappling with gender disparity. This is the issue that women in finance want the Chancellor to prioritize – regardless of their gender. Sarah Beale points out that only one of the top 100 UK accounting firms has more female partners than male. The gender pay gap persists, with women earning significantly less than their male counterparts in roles like financial managers and directors.
Sara de la Torre, head of financial services at Dun & Bradstreet UK&I, echoes this sentiment. She emphasizes the importance of addressing the gender pay gap, advocating for affordable childcare and flexible working arrangements. These are crucial for reigniting economic growth and unlocking the full potential of women in the industry. The Women’s Budget Group revealed in April that women’s median weekly pay is £490.60 compared to men’s £665.60 – a 26% gap. This gap widens to 29% when considering annual pay.
Rachel Reeves has pledged to address the gender pay gap. However, Labour’s approach is not to enforce legal measures but to work with businesses to implement action plans. While small businesses with under 250 employees are initially exempt, this policy will be reviewed.
While the appointment of Rachel Reeves as Chancellor is undoubtedly a landmark achievement, women in finance are clear: true progress requires more than symbolic representation. They are looking to the new Chancellor to take concrete steps towards a more equitable and inclusive finance sector.
