On 14 July 2026, HM Treasury (HMT) published an update on its financial services growth and competitiveness strategy (FS Strategy) one year after publication.

Background

The FS Strategy, published in July 2025, set out a ten-year plan for the UK to be the world’s centre of choice for financial services investment now and in 2035. It sought to place the competitiveness of the UK’s financial services sector at the heart of the government’s plan for growth.

Ahead of the Chancellor’s speech at Mansion House 2026, the government undertook a targeted industry feedback exercise to inform this publication and the next steps it would take forward to deliver on the FS Strategy.

Summary

This update in relation to the FS Strategy sets out areas of progress intended to make the UK, by 2035, the global location of choice for financial services firms to invest, innovate, grow and sell their services, in particular it highlights:

  • Delivering a competitive regulatory environment: The government has introduced a Financial Services and Markets (FSM) Bill to Parliament that is estimated to deliver a net positive impact to society of £1.6 billion over the next decade, including £1 billion in administrative savings to firms and the New Growth Allowance in ring-fencing reforms which could be used to unlock up to £80 billion of new financing for UK businesses.
  • Harnessing the UK’s global leadership in financial services: The government has launched the Transatlantic Taskforce for Markets of the Future with the to advance UK-US financial services collaboration and the Office for Investment: Financial Services has engaged with over 150 firms, since its launch, providing support to establish or scale their UK presence.
  • Embracing innovation and leveraging the UK’s FinTech leadership: The first six firms are working with the Financial Conduct Authority and Prudential Regulation Authority’s Scale-Up Unit, with second cohort to be announced later in 2026, the government legislated for a comprehensive regulatory framework for cryptoassets, coming into force on 25 October 2027 and has consulted on creating a single, streamlined framework for traditional and tokenised payments.
  • Building a retail investment culture and delivering prosperity through UK capital markets: Eight firms have been authorised to provide targeted support, with around 18 million consumers expected to benefit from targeted support over the next decade, £25.8 billion of equity capital has been raised in London since the start of 2025, the Pension Schemes Act 2026 passed, enabling an expected additional £29,000 in pension savings over the lifetime of an average career earner.
  • Setting the UK’s financial services sector up with the skills and talent it needs: Over 20 of firms have signedup to Financial Services Skills Compact, covering over 250,000 UK employees.
  • Realising the economic potential of financial service clusters: Investment in clusters across the UK have been established, including up to 1,000 jobs in Belfast, £300-350 million in Bournemouth, and £4 million and 200 jobs in Manchester.