UK Finance has today released its Growth Plan, which was originally submitted to the Government at the beginning of March. This comprehensive document brings together the perspectives and insights of our member institutions and outlines a set of practical reforms designed to help the financial services sector play a stronger and more dynamic role in advancing the UK Government’s economic growth agenda.
The Growth Plan is not only aimed at driving national prosperity, but also at ensuring tangible benefits for consumers, businesses, and society at large. By identifying the structural and regulatory changes necessary to unlock the full potential of the financial services industry, the plan serves as both a roadmap and a call to action.
We are calling on the Government and regulators to take decisive and coordinated steps in the following key areas:
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Creating a pro-growth business environment: One that fosters innovation, reduces unnecessary burdens, and encourages long-term investment.
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Ensuring the UK’s financial system is fit for the future: This means modernising outdated regulations and building resilience through smarter, more responsive governance.
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Unlocking the power of financial services for all: By increasing accessibility, affordability, and efficiency in how financial services are delivered to individuals, small businesses, and wider society.
To help deliver on these goals, UK Finance has outlined a series of targeted reforms. Encouragingly, a number of the changes we have advocated for are already starting to take shape:
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The Government has announced that the Payment Systems Regulator (PSR) will be merged into the Financial Conduct Authority (FCA), helping to streamline and simplify the UK’s complex regulatory architecture.
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The FCA has confirmed it will not move forward with its proposal to name firms under enforcement investigation. Instead, it will retain the current ‘exceptional circumstances’ test, helping to protect reputational fairness while maintaining transparency.
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The FCA also plans to simplify consumer credit rules and introduce measures that will bring direct benefits to mortgage customers—making lending more efficient and borrower-friendly.
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The Prudential Regulation Authority (PRA) has announced plans to raise the leverage ratio threshold for retail deposits. This step will support the growth and competitiveness of firms, especially newer market entrants and challengers.
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The Government has taken steps to clarify the semi-regulatory role of the Financial Ombudsman Service (FOS), contributing to a more transparent and balanced complaints resolution framework.
In addition to these initial wins, the Growth Plan includes a comprehensive set of further recommendations for both Government and regulators. These proposals align closely with the Chancellor’s Mansion House reform agenda, introduced in November 2024, which aims to reshape the financial ecosystem to better support innovation, investment, and global competitiveness.
David Postings, Chief Executive of UK Finance, commented:
“Financial services are a fundamental pillar of the UK economy. To ensure the UK remains a world-leading financial centre, we need a forward-thinking regulatory and tax framework that actively promotes innovation and investment.
The current debate around how regulators can better support economic growth has been encouraging. Their willingness to engage constructively has opened up important space for meaningful reform.
We must now make a deliberate and confident shift—from regulating solely to mitigate risk, to developing a more modern framework that balances stability with growth, agility, and international competitiveness.
We are already seeing action from both Government and regulators in response to our proposals, which is a strong indication that our message is being heard. I am hopeful that more of the ideas presented in this plan will be taken forward—so that we can unlock greater value for consumers, empower businesses, and drive inclusive, sustainable growth across the UK.”
UK Finance remains committed to working in partnership with policymakers, regulators, and stakeholders to help shape a financial services sector that is resilient, inclusive, and a catalyst for long-term economic success.