Autumn Budget 2026: FinTech Wales responds to measures supporting investment, innovation and growth
29 October, 2026
FinTech Wales has responded to the UK Government’s Autumn Budget 2026, which introduces new incentives for entrepreneurs and investors, additional support for regional growth, and changes to banking taxation and employment costs.
Despite ongoing economic uncertainty, rapid technological change and increasing competition for investment and talent, Wales’ fintech and financial services ecosystem continues to thrive. With greater clarity, confidence and the right conditions for growth, there is an opportunity to build on this momentum, accelerate investment and innovation, and help even more Welsh businesses start, grow and scale.
Key announcements impacting the Welsh fintech ecosystem
1. New incentives for fintech founders and scale-ups
The Government has announced a new Capital Gains Tax Founders’ Relief, offering a reduced 10% tax rate on up to £10 million of lifetime gains for qualifying founders of high-growth, innovative companies from April 2027. The detailed eligibility criteria will be determined following a Government consultation.
The Government has also announced technical improvements to venture capital schemes, including the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) and Venture Capital Trusts (VCTs), aimed at improving their operation and giving founders greater certainty when raising investment.
The Government will also introduce EMI2, an expanded and rebranded Company Share Option Plan (CSOP), doubling the individual limit for tax-advantaged share options from £60,000 to £120,000 from April 2027.
These measures could help Welsh fintech businesses attract investment, retain skilled employees and encourage entrepreneurs to establish and grow businesses in the UK.
2. Support for female founders
The Budget also introduces measures aimed at improving access to investment for female entrepreneurs, including a commitment by the British Business Bank to increase support for women-led businesses and funds to £200 million.
A new UK-wide scale-up programme launching in 2027 will provide targeted support to female founders of high-growth businesses, including those based in Wales, helping them access investment networks and opportunities to scale.
The Government has also announced an Inclusive Investment Standard aimed at addressing barriers to venture capital funding for women-led businesses.
These measures represent a welcome opportunity to address funding inequalities and support more female-led fintech businesses to grow and scale in Wales.
3. Increased taxation on banks
The Bank Corporation Tax Surcharge will temporarily increase from 3% to 6% between January 2027 and March 2028, helping fund household energy support.
The increase will affect the banking sector, an important part of Wales’ financial services ecosystem. Its potential implications for investment, innovation partnerships and wider business confidence will be an important consideration for the industry.
4. Employment, skills and recruitment
The National Living Wage will rise by 3.9% to £13.21 per hour from April 2027, alongside increases to the National Minimum Wage for younger workers.
For Welsh fintech employers, balancing rising employment costs with the need to recruit and develop skilled talent remains a priority.
With skills and apprenticeships devolved to the Welsh Government, ensuring that Wales has the right investment in education, training and workforce development will be essential to supporting the continued growth of the fintech and financial services sector.
5. AI, innovation and digital transformation
The Government has announced an additional £80 million for its Sovereign AI R&D Procurement Scheme, alongside £120 million to strengthen the AI Security Institute.
The Government has also committed a £20 million UK-wide initiative to support reindustrialisation and high-value jobs in AI hardware, building on existing semiconductor strengths, including those in South Wales.
These measures reinforce the growing importance of AI, digital infrastructure and responsible innovation across financial services.
6. Regional investment and growth in Wales
The Budget confirms approximately £450 million in additional funding for the Welsh Government through the Barnett formula over the Spending Review period, alongside targeted investment in Welsh infrastructure and innovation. This includes £2.5 million to expand M-SParc in Anglesey, subject to business case approval, and £30 million to progress Cardiff Parkway railway station.
To support business growth across the UK, the Government has also announced an additional £20.4 billion in capital and financial capacity for the National Wealth Fund and British Business Bank.
Of particular relevance to fintech start-ups and scale-ups, this includes £450 million for a new venture debt product, offering access to finance without giving up equity, alongside £1.4 billion in new commercial equity investment commitments.
Together, these measures could help improve access to investment, strengthen regional infrastructure and create new opportunities for innovative businesses in Wales.
FinTech Wales response
Sarah Jones, CEO of FinTech Wales, commented:
“We welcome the recognition of entrepreneurs, innovation and regional growth in this week’s Budget. The new incentives for founders and scaling businesses are encouraging, particularly at a time when access to investment and attracting talent remain significant challenges for many companies.
“Wales has a thriving fintech and financial services ecosystem, with ambitious businesses, established financial institutions and a strong culture of collaboration. The opportunity now is to ensure that these national measures translate into meaningful investment, business growth and high-quality jobs here in Wales.
“At the same time, we recognise the pressures facing employers, from rising operating costs to the need for increasingly specialised skills. It is important that policies support business confidence and give organisations the ability to invest in their people, embrace emerging technologies and continue innovating.
“Fintech has an important role to play in the UK’s economic future, and Wales is well positioned to contribute to that growth. At FinTech Wales, we will continue working with our members, partners and government to champion our ecosystem, strengthen access to investment and talent, and ensure Wales remains an attractive place to start, grow and scale a fintech business.”