Chancellor Rachel Reeves has unveiled a new “Scale-Up Unit” under the Treasury’s Financial Services Growth and Competitiveness Strategy, aimed at revitalising the UK’s position as a global FinTech leader.
The initiative, revealed during her visit to Leeds, is designed to streamline regulation and accelerate growth for high-potential financial firms, claims City AM.
The Scale-Up Unit will initially focus on “fast-growing” deposit-takers and insurers before expanding to a wider range of financial services companies. It will be jointly led by the UK’s key financial and banking regulators, offering direct support to firms navigating complex authorisation processes. The move is part of a broader government push to “super charge” innovation and simplify the regulatory landscape for start-ups and scale-ups.
Reeves is expected to address regulators and business leaders at a conference in Leeds, highlighting the burden that the “vast number of rules” places on emerging financial firms. The Treasury has said the new body will allow companies to get faster responses to regulatory queries and access expert advice, saving valuable time for founders and helping them focus on growth.
This new development follows Reeves’ earlier commitment to make the UK the best place to “start up, scale up and list.” It also comes amid growing concern about the UK’s slipping position in global FinTech rankings, where slow authorisation timelines and regulatory bottlenecks have been identified as major deterrents for international investment.
The Scale-Up Unit was initially outlined as part of a broader deregulation drive in the Financial Services Growth and Competitiveness Strategy. The plan includes collaboration with regulators to develop a “streamlined authorisation regime for innovative start-ups” – potentially offering a provisional licence model, referred to informally as “L-plates,” to help young firms enter the market faster.
By reducing bureaucracy and creating a more agile regulatory framework, the Treasury hopes to restore confidence in the UK’s ability to foster financial innovation. The announcement reflects growing recognition that sustained FinTech leadership will depend on balancing consumer protection with a dynamic and supportive environment for entrepreneurs.
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