Scotland’s personal income tax rates – especially on salaries above £30,000 – are holding back financial services growth, according to EY. While the UK average for financial services GVA growth sits at 4%, Scotland trails at 2.9%. EY suggests that matching the rest of the UK on tax could create as many as 16,000 jobs by giving firms the confidence to expand north of the border.
Chancellor Rachel Reeves has unveiled the ‘Leeds Reforms’, a package designed to loosen regulation on banks and fintechs. Among the measures are eased ring‑fencing rules for mid‑sized lenders, faster senior‑executive approvals at the Prudential Regulation Authority, and simplified capital‑adequacy requirements for innovative start‑ups. Supporters say it will spark fresh innovation in the Square Mile; critics warn it risks a repeat of the lax oversight that preceded the 2008 crisis.
The Treasury is overhauling the certification regime for around 140,000 finance professionals. Plans include cutting pre‑approval controlled functions by 40%, digitising the certification process and introducing an expedited appeals path. The aim is to reduce delays, retain talent in the UK and boost the sector’s competitiveness.
London‑based fintech Ediphy, through the fairCT consortium, has been appointed to build and run the EU’s new consolidated tape for bond trading. Over five years, it will aggregate post‑trade data from European venues to improve price transparency. With this infrastructure in place, a UK‑focused tape could follow.
These developments mark a shift towards lighter regulation and greater data transparency in UK finance. As the Leeds Reforms roll out and the bond‑data platform goes live, it will be fascinating to see how firms respond and whether similar moves emerge elsewhere.
