The other view is that is is largely a cosmetic change - which reflects on the general low regard people now have for the banking sector, but does not make a big difference to the ring-fence, for good or ill.

BBC: UK banking reforms: What's new?

"It is absolutely critical that at this time of public sector austerity measures, we do all we can to ensure the now un-ring-fenced School Lunch Grant continues to be channelled towards catering and that school meals remain high quality, nutritious and above all, as affordable as possible for parents, " she said.

BBC: School lunches take-up increases

The economists warned that ring-fencing some areas would "turn the screw" on every other sector that did not benefit from that concession.

BBC: Study warns of 'age of austerity'

The European Commission's Mr. Barnier also said his group was looking at options for structural changes in the banking sector, including the Volcker rule and the recent Vickers report in the U.K., which recommended ring-fencing, or roping off, bank's domestic retail deposits from the rest of their operations.

WSJ: EU Plans Complaint on 'Volcker Rule'