Markets rally as central bank holds rates and hints at spring cut

The situation remains fluid. Further statements are expected later this week, and sources close to the process said that the timetable could still slip if key parties fail to reach agreement on the outstanding issues.

The roots of the current situation go back several years, to a series of decisions that were criticised at the time but attracted relatively little public attention. It was only when the effects began to be felt more widely that pressure for change started to build.

"There is no perfect option here, but doing nothing was never one of them"

A vote is expected before the end of the month. If it passes, the first changes would take effect early next year, with the full package in place by 2028.

The announcement came after weeks of speculation and follows months of negotiations between officials, industry representatives and campaign groups, several of whom had warned that any delay would carry significant costs.

What happens next

Speaking at a briefing on Monday morning, a senior official said the decision had not been taken lightly. "We have looked at the evidence very carefully," they said. "There is no perfect option here, but doing nothing was never one of them."

Critics were quick to respond. Opposition figures described the move as "too little, too late", while campaigners argued that it did not go far enough to address the underlying problems that have been building for more than a decade.

Independent analysts have cautioned against reading too much into the initial figures. "The headline number looks dramatic, but the picture underneath is more nuanced," said one researcher who has studied the sector for 15 years. "What matters is what happens over the next 12 months."