Autumn Budget: Sunak actions more Kalifa Review recommendations
Chancellor Rishi Sunak will implement more of the recommendations from the Kalifa Review, including seed funding for the establishment of a dedicated fintech centre.
During his Autumn budget speech earlier today, Sunak said that he would seed fund a new Centre for Finance, Innovation and Technology (CFIT), to tackle barriers to growth and accelerate the UK fintech sector. This was originally mooted in February 2021 by former Worldpay chief executive Ron Kalifa.
“There is a need for a new independent body to be established,” said Kalifa at the time.
“The purpose of that body is to try to convene and make sure that seed capital is provided to it initially from government, and then it runs on its own legs going forward.
“That new entity is one that I’m putting a lot of hope and expectation in in terms of how we go forward.”
Innovate Finance chief executive Janine Hirt welcomed the CFIT announcement, saying that it will help fuel growth in the UK’s fintech sector.
“This budget presented an opportunity to advance the key recommendations set out by the Kalifa Review earlier this year to boost the growth of the UK fintech sector, and we welcome the chancellor’s commitment to do exactly that,” Hirt said.
“It included further action on a number of the recommendations of the Kalifa Review, which will support further innovation by fintechs across the UK: the announcement of seed funding for a Centre for Finance, Innovation and Technology (CFIT), progress on the scale-up visa, and extension of R&D tax credits for data and cloud computing.
“Additional funding for the British Business Bank to invest in regional business angels and patient capital provides a further stimulus to investment in high-wage, high productivity fintech jobs in clusters across the UK.”
The Autumn Budget and Spending Review 2021 quoted the Kalifa Review when discussing its plans to unleash innovation through immigration, stating that “it is vital that innovative businesses have access to the talent and skills they need.”
“High skilled migration boosts innovation, jobs and competitiveness,” the review continued. “49 per cent of the UK’s fastest-growing businesses have at least one foreign-born co-founder and approximately 40 per cent of staff in UK fintechs are from overseas.”
Following the publication of the Kalifa Review earlier in the year, the chancellor pledged to action a number of recommendations, including a new Financial Conduct Authority ‘scale box’, and a taskforce into digital centralised currency.
“This year is seeing record levels of investment in UK fintech, widespread adoption of digital services by consumers, and new products and services, including ones that address societal challenges like financial wellbeing and climate change,” added Hirt.
“Government has helped create the environment for this success. Today’s budget provides further support, but we must keep up momentum if we are to maintain our position as a global leader.”
Read more: Innovate Finance chief says fintech sector can “save the world”