Autumn Budget 2017: Key points for the financial services sector

Philip Hammond, Chancellor of the Exchequer, has delivered the Autumn Budget 2017. Key points for the financial services sector include:

  • Asset management – the Government will publish a new long-term strategy to ensure that the UK asset management industry continues to thrive and deliver the best possible outcomes for investors and the UK economy. This will include actions on skills, harnessing financial technology solutions, mainstreaming innovative investment strategies, and continuing a coordinated programme of international engagement.
  • Banking -the Government is committed to supporting competition in banking. The Budget sets out actions which will enable innovation in banking services, strengthen challenger banks, and improve access to affordable credit for consumers. RBS will fund and deliver a £775 million package of measures designed to improve competition in the UK business banking market; and the PRA will make capital requirements more proportionate for eligible smaller banks. In addition, from early 2018, the open banking project will make it easier for customers to access innovative products and services that better suit their needs.
  • Brexit – £3 billion will be set aside over next two years to prepare the UK for exiting the EU and ensure a smooth transition.
  • Competitive markets – the Government will provide the Competition Markets Authority with an extra £2.8 million a year, so it can take on more cases against companies that are acting unfairly.
  • Innovation – to secure the UK’s world-leading position in digital innovation, the Government plans to invest £21 million over the next 4 years to expand Tech City UK’s reach. A dedicated sector programme for leading UK tech specialisms, including AI and FinTech, will be rolled out.
  • Tax evasion, avoidance and compliance – the Government remains committed to tackling tax evasion and avoidance, aggressive tax planning and non-compliance and has set out further steps to raise £4.8 billion between now and 2022-23. Steps include publishing a consultation response on requirements to notify HMRC of certain offshore structures; and extending offshore time limits.