Spring Statement 2025: What It Means for Welsh Fintech

Today, Chancellor Rachel Reeves delivered her Spring Statement While the majority of the announcement focused on welfare reforms, and there was little direct mention of fintech, when considered alongside the FCA’s newly published 5-year strategy, it presents important signals for the future of Welsh fintech. FinTech Wales explores what this means for the sector.

Unlocking Growth Through Smarter Regulation

On 17 March 2025, the UK Government published a policy paper and accompanying press release outlining a new approach to ensure regulators and regulation support growth — echoed in the Chancellor’s emphasis on cutting regulatory burdens and encouraging private sector investment.

The Spring Statement confirmed the creation of a £3.25 billion Transformation Fund to support the fundamental reform of public services, seize the opportunities of digital technology and Artificial Intelligence (AI), and transform frontline delivery to release savings for taxpayers over the long-term. The first allocations from the Transformation Fund will invest in vital public services and accelerate the modernisation of the state.

This aligns with the first priority of the FCA’s new strategy, which aims to “improve its processes and embrace technology to become more efficient and effective.” This is encouraging for fintechs and financial services firms, as it signals a move towards a more digitally enabled and innovation-friendly regulatory environment. Faster regulatory approvals, streamlined compliance expectations, and greater use of regtech could lower barriers to entry and allow fintechs to focus on scaling solutions.

Growth Strategy Built on Spending Restraint

While headline tax cuts or major new spending commitments were notably absent, the government is focusing on structural reforms — including planning and infrastructure acceleration, welfare-to-work measures, and cutting red tape — to stimulate private investment and productivity.

Since the Autumn Budget, operating costs for employers have increased — with many businesses preparing for the rise in employers’ National Insurance contributions and the 6.7% increase in the National Living Wage, both taking effect from April 2025. These changes, though aimed at improving worker welfare, have added to the pressure on firms already facing inflationary input costs and economic uncertainty.

The Spring Statement offered limited direct relief for employers. However, the Chancellor reinforced her commitment to fiscal discipline, regulatory reform, and a pro-growth business environment — signalling that no additional tax burdens would be introduced in the short term.

At FinTech Wales, we continue to work closely with our members, partners, and policymakers to ensure businesses are supported through this period of adjustment — helping them adapt their recruitment, skills development, and talent strategies in response to a changing economic landscape.

Household Incomes, Living Standards, and Financial Inclusion

The Chancellor stated that the OBR now expects real household disposable income to grow “at almost twice the rate” forecast in the autumn, driven by falling inflation and rising wages.

While the Spring Statement didn’t offer immediate cost-of-living support, the government reaffirmed its commitment to raising living standards — with real household income named as a key metric for tracking the success of its growth agenda. This complements the FCA’s third strategic priority: to “help consumers navigate their financial lives by working with industry to boost trust, product innovation and ensure the right information and support is available.”

At FinTech Wales, financial inclusion remains a core focus, and we continue to work with partners like Future Finance and our member organisations to help deliver more personalised, transparent, and accessible financial services.

“This week’s Spring Statement and the launch of the FCA’s 5-year strategy both highlight a clear direction of travel: an emphasis on streamlining regulation, reducing bureaucracy and driving long-term growth through tech-enabled innovation. While the immediate impact on fintechs may be limited, the signals are encouraging for a more innovation-friendly business environment in the future. At FinTech Wales, we’re focused on ensuring our members are supported through changing economic conditions. We’ll continue working closely with industry and government to champion the role of fintech in building a more inclusive, resilient and competitive financial services sector.”