UK Chancellor Rachel Reeves has unveiled plans for a new specialised “scale-up unit” designed to “provide dedicated resource for fast-growing firms seeking support as they expand”, according to a statement from the Treasury.
The Treasury says support delivered by the new unit “will help banks, insurers, and fintech firms expand faster, create well paid jobs, and attract investment”.
The new unit will initially focus on providing bespoke support for banks and insurers to navigate regulations. Its scope will then extend to support financial services firms across the sector, including the UK’s 3,000-strong fintech community, from early next year.
Regulatory navigation has been identified as a major obstacle to business scaling. To tackle this challenge, the scale-up unit will operate under joint leadership from the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).
The FCA explains that the unit will help firms identify which regulatory processes apply to their specific “scaling plans” and coordinate interactions with regulators both before and during formal application submissions.
Speaking at a conference of regulators and business leaders in Leeds last week, Reeves acknowledged that the “vast number of rules make life complicated” for financial services firms, adding: “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.”
This initiative represents part of the UK government’s broader strategy to establish the country as the world’s leading destination for financial firms by 2035. The announcement builds on regulatory reforms introduced at the end of 2024, when Reeves outlined plans to create a “more dynamic” regulatory approach that enhances sector competitiveness.
Recent regulatory changes include consolidating the Payment Systems Regulator (PSR) into the FCA, ending its status as an independent body. In April 2025, the government also advanced draft legislation for cryptoasset regulation, aiming to establish “clear standards on transparency, consumer protection, and operational resilience” that mirror those applied to traditional financial institutions.
Source: https://www.fintechfutures.com/
