UK Fintech Firms Push Government to Back Growth, IPO Dreams

Executives of some of Britain’s most valuable and fast-growing financial technology firms warned the Labour government that London could fall behind in the fintech world if the UK fails to address some of the industry’s key concerns, including the challenges they see with share listings and regulators’ speed in decision-making.

In a meeting with City Minister Tulip Siddiq on the sidelines of a fintech conference in London this week — just days before Prime Minister Keir Starmer convenes an International Investment Summit — the business leaders expressed a lengthy list of concerns, according to people with knowledge of the matter.

Among those who met Siddiq include Revolut’s UK Chief Executive Officer Francesca Carlesi, Clearbank CEO Charles McManus, and Zilch Technology Ltd. boss Philip Belamant, as well as representatives from OakNorth Bank and Atom Bank, the people said, asking not to be identified because they aren’t authorized to speak publicly about the meeting. 

Capital-gains tax

Concerns over increases to capital-gains tax, lagging relief for entrepreneurs, rules stifling growth and competition, as well as lack of access to capital, were among the topics discussed, the people said. Siddiq said she would take their message to the Treasury, one of the people said, and agreed to another meeting with the fintech executives in the coming months.

“We want to embrace fintech,” a Treasury spokesperson said in a statement. “That includes unlocking billions of pounds of investment in the UK economy through our pension review so that more innovative companies can access the capital they need to grow.”

The discussions point to the pressure Starmer’s administration is facing to deliver on its pro-growth election pledges as confidence in the economy dims. A series of bleak warnings about public finances have raised concerns Chancellor Rachel Reeves is set to raise taxes in her first budget on Oct. 30, even as both Starmer and Reeves gear up to court global capital at the investment summit on Oct. 14.

Representatives for Revolut, OakNorth, Atom and Zilch declined to comment on the private meeting with Siddiq. A spokesperson for Clearbank did not immediately respond to a request for comment.

There’s a growing fear that the nation’s fintech industry — like other businesses — could choose to list elsewhere when they eventually decide to go public. Considered one of the pillars of the UK’s economy, the sector has created 76,000 local jobs and could add £328 billion to the domestic economy in the next five years if it remains a global leader, according to forecasts by trade body Innovate Finance.