Janine Hirt, CEO of Innovate Finance, said:

“This Budget presented an opportunity to advance the key recommendations set out by the Kalifa Review earlier this year to boost the growth of the UK FinTech sector, and we welcome the Chancellor’s commitment to do exactly that.

We welcome the move by @RishiSunak to raise the the bank levy allowance for #FinTech Challenger Banks. The increase to £100m profit will accelerate investment by the financial services innovators themselves, as well as making them more attractive when seeking external funding. pic.twitter.com/7aafmSopJ5

— Innovate Finance (@InnFin) October 27, 2021

“It included further action on a number of the recommendations of the Kalifa Review, which will support further innovation by Fintechs across the UK: the announcement of seed funding for a Centre for Finance, Innovation and Technology (CFIT), progress on the scale-up visa, and extension of R&D tax credits for data and cloud computing. Additional funding for the British Business Bank to invest in regional business angels and patient capital provides a further stimulus to investment in high-wage, high productivity FinTech jobs in clusters across the UK.

“The extension of R&D tax credits and the changes to the visa system outlined through the Scale Up Visa both demonstrate that this Government is backing the role of UK FinTech companies in fuelling economic recovery and providing financial support for SMEs. These are welcome interventions that remove barriers to recruiting the best talent and will enhance the flow of innovation in the long run.

“This Budget also recognised the importance of FinTech in enabling people and small firms to better access finance across the country. An extension of the Recovery Loan Scheme – which Fintech lenders are a key part of – and the raising of the bank levy allowance for challenger banks will accelerate more innovation in the banking sector.

“Alongside today’s positive tax and spending commitments, Innovate Finance now looks to the Government and regulators to set out a joined-up regulatory roadmap for financial services innovation and competitiveness, to ensure we keep pace with technology and overseas competitors.

“The rapid development and adoption of new services and products means that there can be no let-up in Government activity to maintain the UK as a trusted centre for financial innovation. We now need the Government to accelerate work on introducing a new UK regime for the regulation of crypto assets and an ambitious plan for extending open banking across financial services and alongside a digital ID.

“This year is seeing record levels of investment in UK Fintech, widespread adoption of digital services by consumers, and new products and services, including ones that address societal challenges like financial wellbeing and climate change. Government has helped create the environment for this success. The Budget provides further support, but we must keep up momentum if we are to maintain our position as a global leader.”

Source: Innovate Finance

Responding to the Budget, Policy Chair at the City of London Corporation Catherine McGuinness said:

Policy Chair of the City of London Corporation's response to the Budget:https://t.co/oKiVwT2AD2

— Catherine McGuinness (@City_McGuinness) October 27, 2021

INFRASTRUCTURE / LEVELLING UP

“The commitment to spend an additional £1.7bn from the Levelling Up Fund on infrastructure across the UK, including London, is welcome. Increased connectivity will help create the conditions for businesses across the country to flourish.

“It is important that levelling up does not lead to a levelling down of London. As the Prime Minister recognised earlier this year, the capital faces unique challenges and still has major inequalities. London is the beating heart of the UK economy and its success benefits every corner of the United Kingdom.”

VISAS AND SKILLS

“The introduction of scale-up visas is a positive signal that the UK remains open to the best and brightest talent from across the globe. It’s essential that the UK can attract international workers to unlock the full potential of fintech, green finance and other fast-growing industries. We look forward to greater clarity related to the timeline and eligibility.

“Additional funding to train workers will help to upskill our workforce through apprenticeships, skills bootcamps and new T-level technical qualifications. This will not only prepare people for better paid jobs, it will also contribute to the UK’s competitive advantage.”

BUSINESS RATES

“The one year 50% business rates discount will be a financial lifeline for the retail, hospitality and cultural sectors. Many City business in these sectors have been hit hardest by the pandemic. This measure will provide a crucial short-term boost for these business as they help to drive forward our economic recovery.”

CUT IN CORPORATION TAX SURCHARGE ON BANKS

“Banks are committed to paying their fair share to support the wider economy, with the sector contributing £39.6 billion in taxes last year. But it is also important that the UK remains internationally competitive. This cut in the surcharge is a welcome step towards ensuring a level playing field for banks even though the sector will continue to be taxed at a higher rate than other parts of the UK economy.

“Financial services is a key engine of growth for the UK economy and this measure will support the sector in continuing to create jobs and spreading prosperity across the country.”

FINTECH

“The seed funding of the Centre for Finance, Innovation and Technology (CFIT), a key recommendation of the Kalifa Review, is a very positive step. This important initiative will not only benefit the fintech sector, but society and the economy more broadly, by developing answers to key challenges such as open finance. The move will solidify the UK’s position as a global leader in fintech, which could add £24bn to the economy by 2030.”

GLOBAL BRITAIN INVESTMENT FUND

“The additional funding for the Global Britain Investment Fund should help to attract greater overseas investment into the UK. Foreign direct investment is essential for all sectors of the UK economy. The City of London Corporation will continue to promote the UK to investors in both emerging and developed markets.”

Source: City of London Corporation