Chancellor Rachel Reeves MP has launched a new FCA-PRA business ‘Scale Up’ unit based in Leeds which she believes will potentially “supercharge” the growth of regulated firms.

Ms Reeves said the unit would boost the expansion of some of the UK’s most innovative financial services companies by offering bespoke support to help them navigate regulatory demands.

She said today: “I am proud to be back in Leeds, home to the second largest financial services centre in the UK, to launch our new Scale-up Unit – which will supercharge the growth of some of our most innovative companies. 

“The vast number of rules make life complicated for these businesses. We are helping them cut through the noise, to grow and innovate. That’s how we will boost jobs, boost growth, and build an economy that works for, and rewards, working people.”

The Chancellor launched the new unit in Leeds at an FCA Forum today. The forum was attended by investors, financial services bosses and local leaders.

In July in her Mansion House speech she announced plans to boost investment and drive growth by building on, “regional strengths and financial services clusters.”

Leeds is seen as the second biggest financial services centre in the UK, she said, and the FCA already has a major office in Leeds employing several hundred staff.  

The new unit will be established jointly by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority.   

The unit will eventually provide all UK regulated firms with, “tailored support and guidance” to help them test ideas and grow. It will also connect firms with a dedicated point of contact for support.  

The unit will initially support firms who are regulated by both the PRA and FCA, later adding FCA solo-regulated firms.  

The Treasury says recent reforms are driving more investment into the UK, with over £110 billion committed by global financial services companies in the last month. It cited global fintech Revolut opening its new headquarters in Canary Wharf, as part of a £3 billion investment over the next five years that will create 1,000 jobs.

FCA CEO Nikhil Rathi said: “We’ve committed in our strategy to supporting growth and ensuring the UK remains the premier destination for financial firms to start up and grow. By joining up with the PRA, our new Scale-up Unit will provide firms with tailored, hands-on support to help them scale and grow faster.

Sam Woods, CEO of the Prudential Regulation Authority, said: “This new unit will encourage a dynamic, competitive landscape in financial services by offering tailored support to firms on how to navigate regulation while scaling up.”

The ‘Scale Up’ service will open initially to fast-growing deposit-takers and insurers, before expanding to serve other financial services firms including fintechs next year. The UK is home to more than 3,000 fintech firms, employing over 75,000 people nationwide. 

The initiative forms part of the government’s Plan for Change drive to boost the economy.

• Details of the Scale-up Unit on the FCA website.