Tomorrow, the Chancellor of the Exchequer, Rachel Reeves, will deliver the Spring Statement, and the Fintech industry will be watching closely to see how future policy will impact their sector and other changes that may affect the economy in general. The UK government has already announced it will look to cut bureaucratic red tape that undermines business activity. This is something everyone can support. Details of other policies will be revealed tomorrow.
Payhawk CEO Pedro Batista has shared his thoughts on how the UK government can help support the Fintech industry. He believes that spend management is critical amid the public sector efficiency drive.
“The government’s announced 15% reduction in Civil Service running costs signals a broader efficiency mandate that will inevitably extend to the private sector. At Payhawk, we’re seeing firsthand how intelligent spend management technology enables organizations to identify inefficiencies without hampering growth. The public sector’s £2.2 billion efficiency target mirrors challenges faced by businesses of all sizes in today’s economic climate.”
Batista says that “data visibility is key,” SME closure rates are concerning, and the Chancellor must address “business resilience.”
“Our research reveals that limited visibility (51%), poor insights (44%), and inaccurate data (37%) are the top technology challenges preventing CFOs from making informed decisions. Any meaningful economic recovery must include initiatives that help businesses adopt solutions that provide real-time financial visibility.”
Many expect fiscal tightening to be a top item, and changes to the capital gains tax could undermine business investment. Batista says their research indicates an increase in Fintech spending of 13.4% next year alone. He believes a consistent, predictable tax framework would best support this type of private sector investment.
Batista states that the Chancellor faces pressure to outline her growth strategy.
“Our data shows that CFOs expect technology investments to drive a 14% increase in revenue and 20% increase in operating cash flow over the next five years. These significant growth projections demonstrate how financial technology adoption directly supports the broader economic goals the government seeks to achieve.”