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Budgeting for a Better Financial Services

See here for techUK's Financial Services and Payments Roundup of the 2016 Budget.

The recent 2016 budget allowed the Chancellor to reiterate the Government’s support for the burgeoning UK FinTech industry. Of the announcements to be ‘welcomed by the UK tech sector’ in the recent 2016 budget, the following are perhaps most relevant for members operating in Financial Services and Payments:

  • Access to fairly priced financial services is vital for both households and firms. At this Budget the government reaffirms
    its commitment to boost competition in UK retail financial services, including by:
    • Pursuing more proportionate capital requirements
      for small banks and building societies in the EU
    • Working with the New Bank Start-up Unit to
      promote the authorisation of new banks, building on the three new banks already authorised in this Parliament.

techUK welcomes this commitment and recognises the importance of ‘challenger’ banks to the creation of a more competitive and innovative banking sector.

  • Ensuring action is taken to improve further the
    Current Account Switch Service following Bacs’ recent report on making improvements to the service
  • New ways of providing financial services also
    expand choice for consumers and businesses. The government is examining recommendations from the recent Fintech benchmarking exercise and will announce further measures to support the sector in the coming months. These build on actions the government has already taken, including support for alternative lending, to make the UK the global FinTech Capital.
  • Bad debt relief for peer-to-peer (P2P) industry – As announced at Autumn Statement 2014, the government will allow tax relief on bad debts incurred on P2P loans against other P2P income. (Finance Bill 2016)

Importantly, this budget signals government’s
continued commitment to ensuring that the UK maintains its world leading FinTech sector. techUK will monitor these developments accordingly, keeping members informed of upcoming announcements to the Government’s fast moving Fintech agenda.

See here for techUK's high level response to the budget.


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