Autumn Budget 2026: Submission by Innovate Finance
Innovate Finance has submitted its representation to HM Treasury ahead of the Autumn 2026 Budget.
UK FinTech is already delivering the Government's ambition for good growth: creating skilled jobs, attracting investment, and expanding access to financial services for businesses and individuals in every postcode. This Budget is an opportunity to build on that success.
Our submission sets out practical steps to pull the UK’s FinTech lever to create even more growth by unlocking SME lending, accelerating AI adoption through Open Finance, strengthening the UK's talent and investment ecosystem, and establishing UK leadership in sterling stablecoins.
Our submission sets out four priorities for the Government:
1. Unlock more finance for SMEs through challenger banks
FinTech challenger banks and non-bank lenders already provide 68% of SME lending in the UK. We recommend Government commissions the PRA to launch a holistic review of bank capital requirements to ensure proportionate treatment of challenger banks. More immediately, we recommend the Bank Corporation Tax Surcharge threshold rise from £100 million to £500 million, to promote retail competition, support UK listings, and boost SME lending across the country.
2. Make the UK the world leader in AI in financial services by 2030
The UK has a unique opportunity to combine its pro-innovation approach to AI with its leadership in Open Banking and Smart Data to become a world leader in trusted agentic commerce and finance. We recommend the Government brings forward the legal and regulatory basis for Open Finance, and prioritises AI-enabled financial guidance, savings, investments and SME finance as the first use cases, by the end of 2026.
3. Strengthen the UK's talent, investment and entrepreneurial ecosystem
The Budget is an opportunity to modernise employee share ownership so high-growth FinTechs can compete for talent with Big Tech and incumbent banks, by expanding Enterprise Management Incentives (EMI) eligibility and limits and reforming Company Share Option Plans (CSOPs). Government should also introduce a Scale-up Reinvestment Relief and abolish stamp duty on UK listed shares to boost reinvestment by founders and domestic investment. Together, these measures could unlock over £1 billion in additional investment in UK FinTech and up to £250 billion in UK listed equity demand.
4. Establish the UK as a global leader in sterling stablecoins
At this Budget, the Government should offer clear and unambiguous support for Sterling stablecoins through a co-ordinated strategy that treats regulated stablecoins as cash-equivalent digital money and ensures a level playing field with other forms of digital money. This should include updating accounting standards and committing to accept stablecoins as payment for Government services and tax.
Taken together, these measures will allow the Government to use the UK's existing FinTech strengths as a springboard for good growth and opportunity across every part of the country.
Janine Hirt, CEO of Innovate Finance, said:
"FinTech is a natural partner for the Government’s good growth ambition. The sector is ready and has already delivered tremendous impact across the country. This Budget is the moment for the Government to back what is already working, and pull the FinTech lever to make people better off in every postcode.”
