Business

UK government launches regulatory support unit to accelerate financial services innovation

Friday, 24 October 2025 4:06AM UTC

The UK government has announced the establishment of a dedicated Scale-up Unit to streamline regulation for banks, insurers, and fintech firms, aiming to boost innovation, investment, and job creation in the sector.

The UK government is stepping up its efforts to fuel the expansion of innovative financial services firms, with a fresh focus on cutting through regulatory complexities that hinder scale-up potential. Chancellor of the Exchequer Rachel Reeves unveiled plans to establish a dedicated Scale-up Unit for banks, insurers, and fintech companies. The initiative aims to provide bespoke regulatory support, streamlining interactions with the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), thereby allowing businesses to devote more resources to innovation, hiring, and investment.

Speaking at a conference in Leeds, which hosts the UK’s second-largest financial services centre, Reeves highlighted the challenge posed by the extensive regulatory landscape that firms must navigate. “The vast number of rules make life complicated for these businesses. We are helping them cut through the noise, to grow and innovate. That’s how we will boost jobs, boost growth, and build an economy that works for, and rewards, working people,” she said.

The new regulatory liaison unit will act as a singular, accessible point of contact to provide timely responses and expert guidance, effectively removing a significant barrier for scale-ups eager to expand. The unit is expected to begin engaging with fintech firms early next year, reinforcing the government’s commitment to fostering a thriving tech-driven financial sector.

Industry leaders have welcomed these developments. Hiroki Takeuchi, CEO of GoCardless—which recently expanded by opening a 'Northern Hub' office in Leeds—described the Chancellor’s commitment as “hugely welcome.” He pointed to clear regulatory guidance as a critical hurdle fintech firms face when introducing new innovations and stressed that streamlining this process will accelerate the company’s growth and customer service efforts.

This announcement builds on a continuum of government reforms aimed at positioning the UK as the global hub for financial services innovation. The Leeds Reforms, introduced in July 2025, embody a strategic effort to rewrite the financial system, elevate investment, and create skilled jobs across the UK, aiming for the country to be the world’s premier financial services destination by 2035. Complementary to this, the Mansion House Reforms unveiled in late 2023 provided £320 million to boost innovation and channel pension fund investments into high-growth companies to enhance returns for savers.

Further to supporting growth domestically, the UK government has been successful in attracting significant foreign investment into the sector. For example, global fintech leader Revolut announced a £3 billion investment plan focused on its Canary Wharf headquarters, promising to create 1,000 new jobs over five years. Additionally, recent inflows from US financial giants totaling over £1.25 billion have generated thousands of new jobs in cities including London, Edinburgh, Belfast, and Manchester, reinforcing the UK's status as a magnet for global financial services.

The FCA and PRA have expressed strong backing for the Scale-up Unit. FCA Chief Executive Nikhil Rathi underscored the regulatory bodies’ commitment to supporting growth and reaffirmed the UK’s attractiveness as a launchpad for financial firms. Sam Woods, CEO of the PRA, added that the unit’s tailored regulatory assistance aligns with objectives to facilitate competitiveness and a dynamic financial services landscape.

Beyond regulatory reform, the government has taken steps to modernise the capital markets infrastructure, with plans announced earlier this year to accelerate securities trade settlement times to a ‘T+1’ standard by 2027. This move is designed to improve efficiency, reduce costs for investors, and enhance the overall competitiveness of the UK’s financial markets.

A newly launched ‘concierge’ service complements these efforts by providing a one-stop support solution to reduce bureaucratic hurdles for international financial firms investing in the UK. This initiative is part of a broader strategy to streamline processes, thereby making the UK the most attractive global destination for financial services firms and catalysing economic growth and job creation across regions.

Together, these measures reflect a comprehensive approach by the UK government to not only nurture home-grown innovation within financial services but also to attract substantial global investment, ensuring the sector’s robust growth and enduring international prominence.

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Source: Noah Wire Services

More on this

https://ffnews.com/newsarticle/fintech/chancellor-unveils-plans-to-supercharge-growth-of-innovative-financial-services-firms/ - Please view link - unable to able to access data
https://www.gov.uk/government/news/ambitious-plans-to-boost-uk-fintech-and-financial-services-set-out-by-chancellor - In April 2021, Chancellor Rishi Sunak announced plans to enhance the UK's fintech sector, including the introduction of a 'scale box' by the Financial Conduct Authority (FCA) to support growing fintech firms. The Centre for Finance, Innovation and Technology (CFIT) was also proposed to collaborate with regional hubs, addressing sector challenges and promoting fintech growth across the UK. These initiatives aimed to solidify the UK's position as a global leader in digital finance and innovation.
https://www.gov.uk/government/news/leeds-reforms-to-rewire-financial-system-boost-investment-and-create-skilled-jobs-across-uk - In July 2025, the UK government unveiled the Leeds Reforms, aiming to transform the financial system to attract investment and create skilled jobs nationwide. The reforms sought to make the UK the top destination for financial services by 2035, focusing on reducing red tape and supporting savers. Chancellor Rachel Reeves emphasized leveraging the UK's global strengths to boost the economy and improve financial outcomes for working people.
https://www.gov.uk/government/news/320-million-plan-to-usher-innovation-and-deliver-mansion-house-reforms - In November 2023, Chancellor Jeremy Hunt announced a £320 million plan to drive innovation and implement the Mansion House Reforms. The initiative aimed to support pension funds in investing in high-growth, innovative companies, potentially adding £1,000 annually to individuals' pension pots. The plan included a new Venture Capital Fellowship scheme and additional funding for the British Business Bank's 'Future Fund: Breakthrough' programme, fostering the growth of innovative UK businesses.
https://www.gov.uk/government/news/chancellor-goes-further-and-faster-to-drive-growth-by-speeding-up-securities-trades - In February 2025, Chancellor Rachel Reeves announced plans to accelerate the settlement of securities trades in the UK, moving to a 'T+1' standard by October 2027. This change aimed to enhance the efficiency and competitiveness of UK capital markets, aligning with international best practices and reducing costs for investors. The initiative was part of the government's broader strategy to drive economic growth and modernize financial markets.
https://www.gov.uk/government/news/us-financial-giants-boost-uk-investments-and-jobs-across-london-edinburgh-belfast-and-manchester - In September 2025, the UK government announced over £1.25 billion of inward investment from US financial companies, including PayPal, Bank of America, Citi Bank, and S&P. This investment was set to create 1,800 jobs across cities such as London, Edinburgh, Belfast, and Manchester. The move highlighted the enduring strength of the UK-US financial relationship and reinforced the UK's position as a leading destination for global financial services investment.
https://www.gov.uk/government/news/chancellors-new-investment-fast-track-to-make-britain-top-destination-for-global-investors - In October 2025, Chancellor Rachel Reeves launched a new one-stop support service to attract global financial services firms to the UK. The 'concierge' service aimed to streamline processes, reduce red tape, and assist firms in navigating the UK's business environment. This initiative was part of the government's broader strategy to make the UK the most attractive destination for financial services, fostering job creation and economic growth across the country.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: ✅ The narrative is fresh, published on October 24, 2025, with no prior appearances found. The content is original and not recycled. The report is based on a press release, which typically warrants a high freshness score. 🕰️

Quotes check

Score: 10

Notes: ✅ No identical quotes found in earlier material. The quotes appear to be original or exclusive content. 🕰️

Source reliability

Score: 8

Notes: ⚠️ The narrative originates from Fintech Finance News, a niche outlet. While it provides detailed information, its credibility is uncertain due to limited verification. ⚠️

Plausability check

Score: 9

Notes: ✅ The claims are plausible and align with recent government initiatives. The narrative includes specific details, such as the establishment of a Scale-up Unit and support for fintech firms, which are consistent with the UK's financial services growth strategy. However, the reliance on a single, less-established source slightly reduces the confidence in the information. ⚠️

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: ⚠️ The narrative is fresh and includes plausible claims consistent with recent UK government initiatives. However, the reliance on a niche source with uncertain credibility introduces potential risks. Further verification from more established outlets is recommended to confirm the details. ⚠️

Financial Services
Regulatory Reform
Fintech