On 14 November 2024, Chancellor of the Exchequer Rachel Reeves delivered her first Mansion House speech, outlining the Government’s plans to enhance the UK’s financial services sector. This includes plans to publish the Financial Services Growth and Competitiveness Strategy (the Strategy) in Spring 2025. The Strategy is a key component of the UK’s modern industrial strategy, Invest 2035, which identifies financial services as one of eight growth-driving sectors.
Following the speech, HM Treasury launched a call for evidence to gather information that will contribute to the development of the Strategy.
Purpose and objectives
The Government proposes to develop and deliver a “credible 10-year plan” and the Strategy will provide a central guiding framework to support the promotion of sustainable and inclusive growth within the financial services sector while reinforcing the UK’s position as a leading international financial centre.
Key areas of focus
The call for evidence sets out the government proposals to support the financial services sector at a macro-level by identifying several policy pillars including:
- Regulatory environment: Enhancing the regulatory framework to support innovation and competitiveness.
- Skills and talent: Developing a skilled workforce to meet the evolving needs of the financial services sector.
- Innovation and technology: Leveraging technology to drive efficiency and new business models across key sectors like FinTech, insurance, and sustainable finance.
- International partnership and trade: Strengthening the UK’s global financial partnerships to attract foreign investment and explore emerging markets.
Aligned with the policy pillars, the Strategy will also target priority growth opportunities, including:
- Sustainable finance: Incorporating frameworks to support the transition to net zero and addressing barriers to investment in clean energy and infrastructure.
- FinTech: Fostering innovation and the growth of UK FinTechs, ensuring they can compete internationally while enhancing financial services domestically.
- Asset management: Focusing on making the UK an attractive hub for asset management by modernising regulations and promoting innovation, enhancing competitiveness in the global market.
Call for evidence process
The Government is seeking input from interested parties who can offer different perspectives on how to create a successful trading environment by inviting everyone from businesses and consumer groups to academics and other stakeholders to provide feedback on the opportunities and challenges in this sector. This will ensure the Strategy has the full backing of industry, trade bodies and consumer groups, and remains dynamic and future ready.
Stakeholders are invited to submit their responses by 12 December 2024, and the feedback will shape the final Strategy.
We will continue to monitor developments in the coming months.
This publication is a general summary of the law as at the date of publication. It should not replace legal advice tailored to your specific circumstances.
© Farrer & Co LLP, November 2024
