HM Treasury has published its first annual progress update on the government’s Financial Services Growth and Competitiveness Strategy, setting out milestones delivered since the 10-year plan was launched in 2025. The review centers on five areas: a more proportionate regulatory framework, stronger international market access and inward investment, wider use of digital finance, reforms to pensions and capital markets, and skills and regional cluster development. The document presents the strategy as moving from direction-setting to delivery, with measures intended to speed authorisations, reduce regulatory duplication, support lending and investment, and broaden participation in UK capital markets. The update highlights the Financial Services and Markets Bill as the main regulatory vehicle, with an estimated GBP 1.6 billion net benefit over 10 years including GBP 1 billion of administrative savings for firms. It points to consolidation of the Payment Systems Regulator into the Financial Conduct Authority, a 50% reduction in the burden of the Senior Managers and Certification Regime, more ambitious authorisation timelines, and ring-fencing reforms including a New Growth Allowance that could unlock up to GBP 80 billion of financing for UK businesses. On international competitiveness, the report cites launch of the Office for Investment: Financial Services, which has engaged more than 150 firms, and new or expanded cooperation with the US, EU, Switzerland, Japan, China, South Korea, India and the Gulf Cooperation Council. On innovation, it highlights legislation for a comprehensive cryptoasset regime effective from 25 October 2027, work to digitalise wholesale markets, and the FCA and PRA Scale-up Unit. On retail investment and capital markets, it notes that eight firms have been authorised to provide targeted support, the Pension Schemes Act 2026 has passed, 17 pension providers have committed to invest 10% of default funds in private markets with at least 5% in the UK by 2030, and GBP 25.8 billion of equity has been raised in London since the start of 2025. The update also notes the launch of a Financial Services Skills Compact covering more than 250,000 workers and continued promotion of regional financial services clusters. The report also sets out the next implementation steps already in train, including the cryptoasset regime coming into force on 25 October 2027, T+1 securities settlement by 11 October 2027, removal of paper share certificates by the end of 2027, further tokenised deposit pilots later in 2026, and a consultation in 2027 on an Open Finance framework focused on SME lending.
HM Treasury2026-07-14
HM Treasury reports first year progress on financial services strategy, highlighting GBP 1.6 billion in regulatory benefits and a crypto regime from October 2027
HM Treasury has issued its first annual update on delivery of the Financial Services Growth and Competitiveness Strategy, summarising progress across regulation, international market access, digital finance, pensions, capital markets, skills and regional clusters. Key measures include the Financial Services and Markets Bill, estimated to deliver GBP 1.6 billion of net benefits, and legislation for a UK cryptoasset regime that will take effect on 25 October 2027. The report also highlights targeted retail investment support, pension reforms, GBP 25.8 billion of equity raised in London since the start of 2025, and a skills compact covering more than 250,000 workers.