Rachel Reeves will today launch the Treasury’s latest initiative to woo the UK fintech sector with the introduction of a “Scale-Up Unit”.
In a visit to Leeds, the Chancellor will pledge to “super charge” UK innovation with the new body, which will be jointly led by the financing and banking watchdogs.
The service will first be open to “fast-growing” deposit-takers and insurers, before expanding to broader financial services firms.
At a conference with regulators and businesses, Reeves will declare the “vast number of rules” a complication for start-up firms.
The Treasury has said the new body will make it simpler for firms to get timely responses to regulatory queries and access expert support, freeing up time for founders.
It follows Reeves previous promises to make the UK the best location to “start up, scale up and list”.
UK fintech sector slips in rankings
The new unit was first announced as part of the Treasury’s package to boost the UK fintech sector in the Financial Services Growth and Competitiveness Strategy.
Deregulation pushes spearheaded the strategy with “slow authorisation timelines” cited as making the UK less attractive to international firms.
The government also laid the ground work for plans to work alongside regulators to “support a new streamlined authorisation regime for innovative start-ups” which will resemble a “provisional license or L-plates”.
But the industry has raised concerns that the Treasury will need to take bigger swings to bolster the sector after recent reports showed UK fintech slipping in global rankings.
Z/Yen’s 38th Global Financial Centres Index showed the UK’s fintech sector had tumbled to fifth place down from second in the previous edition.
Janine Hirt, chief executive of fintech industry body Innovate Finance, told City AM previous successes provide “no guarantees for future growth”.
Last month, fintech juggernaut Revolut said it would pump £3bn into the UK and create 1,000 highly-skilled jobs over the next five years.
Whilst Reeves touted the move as a “vote of confidence” in the UK it follows the firm’s chief Nik Storonsky blasting the UK’s “extreme bureaucracy” that made it hard to do business in the country.