Chancellor Rachel Reeves is establishing a new Scale-up Unit in Leeds—the UK’s second-largest financial services centre—designed to accelerate the growth of innovative banks, insurers, and fintech firms.

The new initiative, jointly led by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), will give high-potential firms bespoke and expert support to navigate complex rules and regulations. The move, announced at a conference of investors and financial services bosses in Leeds, aims to tear down a key barrier to expansion, foster job creation, and attract greater investment to the region.

Chancellor of the Exchequer Rachel Reeves said: “I am proud to be back in Leeds, home to the second largest financial services centre in the UK, to launch our new Scale-up Unit – which will super charge the growth of some of our most innovative companies. But the vast number of rules make life complicated for these businesses. We are helping them cut through the noise, to grow and innovate. That’s how we will boost jobs, boost growth, and build an economy that works for, and rewards, working people.”

Dedicated Support for Regional Growth

The Scale-up Unit will provide a clear point of contact with the regulators, making it simpler for growing firms to get timely answers to regulatory queries and access expert guidance. This tailored approach is intended to allow entrepreneurs to focus resources on developing new products, hiring staff, and boosting the local economy.

The service will initially be offered to fast-growing banks and insurers, before expanding to include other financial services firms, notably fintechs, from early next year. This is a direct response to a key finding of the 2021 Kalifa Review, which cited regulatory navigation as a major impediment to scaling fintech businesses.

Northern Firms Welcome Regulatory Clarity

The announcement has been welcomed by companies with a growing presence in the North.

Hiroki Takeuchi, CEO of GoCardless, which recently opened its 'Northern Hub' office in Leeds, highlighted the benefits for the technology sector: “The Chancellor's commitment to the growth of financial services in Leeds and across Yorkshire is hugely welcome. Accessing clear regulatory guidance is a key hurdle for fintechs bringing new innovations to market. Streamlining the process will make it easier for firms like GoCardless to concentrate on serving customers and accelerating our growth plans, including our new 'Northern Hub' office in Leeds."

The regulatory bodies emphasised their commitment to supporting UK growth. Nikhil Rathi, Chief Executive of the FCA, stated the unit would provide "tailored, hands-on support to help them scale and grow faster".

This move builds on other government efforts to support regional growth, including the Leeds Reforms, designed to strengthen the UK’s position as a global financial services hub by driving investment outside the South East. The wider context of this work includes over £110 billion committed by global financial services companies to the UK in the last month.