Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to encourage UK-based fintech founders to retain and expand their companies in the UK, including through targeted tax and regulatory incentives.

The Financial Services Growth and Competitiveness Strategy identified Fintech as a priority growth opportunity, and set out the government’s ambition for the UK to remain a leading jurisdiction to start, scale and list a Fintech business.

The Strategy set out a series of measures to shape a regulatory environment for financial services that is proportionate, predictable and internationally competitive. These included working with the regulators to make it quicker and easier for new firms to achieve regulatory authorisation, as well as the launch of a joint FCA-PRA Scale-Up Unit, to enhance engagement with fast-growing, innovative regulated firms.

The Government published its Corporate Tax Roadmap at Budget 2024, which set out a number of commitments for this Parliament. Central to this is the commitment to cap Corporation Tax at 25 percent for the duration of this parliament, confirming the UK as the jurisdiction with the lowest rate in the G7. This is supplemented by some of the most generous business investment tax reliefs and allowances in the OECD - includes full expensing, R&D tax reliefs, and the Patent Box regime.