If the Labour party secures victory in the upcoming UK general election, it must leverage the fintech sector as a driving force for economic growth, opportunity, and inclusion across the nation, according to a report from the Tony Blair Institute for Global Change.
With Labour enjoying a double-digit lead in the polls, Keir Starmer’s party is anticipated to return to power after 14 years in opposition. The report, co-authored with the Startup Coalition, outlines a vision for utilizing one of the country’s most successful sectors to promote a "progressive agenda for a mission-driven government."
The report emphasizes that fintechs can stimulate economic growth if provided with a conducive environment. This includes optimizing incentives such as R&D tax credits and share option schemes, enhancing fintech export opportunities, and ensuring regulatory certainty.
Additionally, it advocates for a national financial inclusion strategy that prioritizes innovation. For instance, the strategy could involve unlocking pensions for startup investments and providing small businesses with diverse payment acceptance options.
Labour has already pledged to establish an open finance roadmap, and recently, the government formed its own open finance task force. The Blair report urges the implementation of an Open Finance framework within the first 100 days of taking office.
Moreover, it recommends introducing regulation for Buy Now Pay Later lending within 100 days and ensuring that financial education is mandated in primary schools by 2025.
Jeegar Kakkad, director of government innovation at the Tony Blair Institute for Global Change, highlights the vital role of fintech startups in dismantling barriers to financial opportunity across the UK. He states, "By developing a national financial inclusion strategy with fintech at its core, and delivering innovations like Open Finance, we can enhance choice and competition in financial services. This will empower individuals and communities to seize control of their financial well-being like never before."
For more details, you can read the report here.