Question to the HM Treasury:

To ask Her Majesty's Government what steps they are taking to introduce a Fintech Growth Fund; or, if they are not taking any such steps, what plans they have to fill the funding gap in the fintech industry.

The UK is the leading destination for fintech investment in Europe. In 2020 the sector raised $4.1bn - more than the next five European countries combined. The Government recognises that access to growth capital will be key to ongoing sector growth and therefore encourages industry to take forward the recommendation made by the Kalifa Review of UK Fintech for a £1bn Fintech Growth Fund.

The UK is also continuing to take steps to attract investment, including through the British Business Bank’s lending and equity programmes. These have supported nearly £8 billion of finance to almost 100,000 smaller businesses, including UK fintechs. British Patient Capital, established in 2018 within the British Business Bank with £2.5 billion of investment, will crowd in an additional £5 billion of private investment over 10 years and increase the overall supply of funding for companies at later stages of their growth, where capital needs are higher.

Government is also looking at other ways to unlock capital for UK scale-ups including by removing operational and regulatory barriers to Defined Contribution pensions schemes being able to invest into illiquid assets, such as Venture Capital. Removing these barriers could help to ensure savers access a broader set of asset classes, higher returns and benefit from the growth of the next generation of innovative UK businesses.

In a further boost for innovative companies seeking to raise money in the UK, the Government has also published plans on how we are taking forward the recommendations in the UK listings review, with the FCA also looking to bring forward rule change consultations by the summer, including on Dual Class Share Structures.