UK Chancellor Rachel Reeves has announced a financial services strategy set to launch in March 2025, aimed at fostering growth and enhancing the fintech and sustainable finance sectors.
Reeves laid out plans to reform the pension system, converting Local Government Pension Schemes in England and Wales into megafunds. This initiative has the potential to increase savings in pension pots and unlock £80 billion in new investments for businesses and infrastructure.
She also mentioned that trillions of pounds will be mobilized for green energy initiatives. The Treasury is working on legislation to regulate ESG ratings providers, and a UK Green Taxonomy is being developed to establish a framework for carbon and nature markets in the future.
At COP29 in Baku, Azerbaijan, Growth Minister Lord Spencer Livermore highlighted the UK’s dedication to becoming a leader in sustainable finance and directing capital towards climate finance to reshape the system.
The strategy will also focus on establishing growth-oriented remits for financial regulators, which Reeves pointed out have been primarily focused on risk rather than growth. Additionally, an expanded strategy to combat fraud will be introduced, alongside initiatives in the tech and telecom sectors.