Labour’s Industrial Strategy promotes sector specific plan to create ‘the world’s most innovative, full service financial centre’

The UK government’s Department for Business and Trade published a new 10-year Industrial Strategy yesterday (23 June 2025), which includes a sector specific growth plan for the financial services industry as British politicians aim to create “the world’s most innovative, full service financial centre”.

Building on last October’s Invest 2035 green paper, Labour’s long-term industrial plan strives to boost business investment across eight industry sectors over the next 10 years, to create greater investment stability and growth opportunities across the country.

One of the ringfenced eight industries mentioned in The UK’s Modern Industrial Strategy publication is financial services, referencing the insurance and reinsurance markets, fintech, sustainable finance, capital markets and asset management and wholesale services.

Although the sector plan for financial services has not been published in line with the strategy document this week, the government has committed to publish full details of its approach in this marketplace “alongside the chancellor’s Mansion House speech on 15 July” 2025 and “following an extensive co-design process with industry, working in close partnership with the regulators and the sector”.

The report noted that the government has already taken steps to streamline financial services regulation, working closely with the FCA for example, however its full sector plan aims to ensure that sector-wide regulation supports growth. This work will begin with a publication on its review of the Financial Ombudsman Service.

The government also plans to “set up a bespoke financial services concierge service, to help international firms get to grips with UK regulations – attracting more investment and making it easier to do business in the UK”.

The strategy stated: “Building on recent ambitious and wide-ranging reforms, the government’s plans for financial services will rebalance the system, setting the financial services sector up to innovate, grow and enable investment across the UK.

“That means building on our existing success stories, including as a magnet for overseas capital, and creating new ones in digital markets, sustainable finance and beyond.”

Defined key growth sector

Commenting on the Labour government’s Industrial Strategy, ABI director general Hannah Gurga said: “[This] Industrial Strategy delivers a clear, long-term growth vision [and a] commitment to genuine partnership with business and the regulatory certainty firms need to thrive.

“We’re pleased that financial services has been recognised as a key growth sector and look forward to working with government on the detailed sector plan.

“The expansion of the British Business Bank’s capacity and its new £6.6bn growth capital commitment will unlock vital funding to support smaller UK businesses and drive growth.”

Karen Northey, director of corporate affairs at the Investment Association, added: “[The] Industrial Strategy sets the wheels in motion on an important partnership between business and government to unlock further growth in the UK.

“A clear plan to back the UK’s high growth sectors is a welcome signal that Britain is open for business.

“It’s particularly positive to see government’s pledge to increase the capacity of the British Business Bank, including an additional £4bn earmarked for industrial strategy sectors. We must ensure that the UK is an investor friendly destination, where capital can be efficiently channelled into companies and projects with strong growth prospects.

“We look forward to the publication of the financial services sector plan at the Mansion House Speech and continuing to work with government, industry and [the] regulator to drive growth and boost living standards across the UK.”