How could Innovate Finance's calls for reform affect HM Treasury's policy direction?
HM Treasury faces pressure over capital markets and stamp duty abolition Innovate Finance, which includes Monzo and Revolut among its members, has been lobbying for significant financial reforms, including the complete abolition of stamp duty. This pressure is being addressed by Lucy Rigby, the economic secretary to the Treasury, who confirmed the government is continually seeking ways to improve capital markets competitiveness. The Treasury is also facing demands from firms to increase the threshold for a sector-specific tax, which the Chancellor will decide in the context of the Budget.
- Effect
- Mixed
- How direct
- Stated in the reporting
- When
- Within weeks
- The story
- Gone quiet
How it reaches HM Treasury
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Innovate Finance confirmed Monzo and Revolut as members. Lucy Rigby, the economic secretary to the Treasury, stated the government is continually looking for ways to ensure the financial services sector remains globally competitive. Rigby noted that while the 2025 Budget included a stamp duty holiday for new listings, the government believes capital markets reforms are not complete. Innovate Finance has called for the abolition of stamp duty entirely.
The full event1independent outlet -
The calls for abolition and the lobbying for increased tax thresholds (such as raising the surcharge threshold from £100m to £500m for challenger banks) put direct pressure on HM Treasury. Lucy Rigby, the economic secretary to the Treasury, confirmed that decisions on all forms of tax are for the Chancellor to make in the context of the Budget.
1 report connects these two. Brind only summarizes; follow a link to read the reporting itself.
- cityam.com Oct 11
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United Kingdom government department
Everything about HM Treasury
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The facts so far
As reported. Each one links to where it comes from.
- Innovate Finance counts Revolut and Monzo among its members.cityam.com
- Innovate Finance has called for stamp duty to be abolished entirely.cityam.com
- UK fintech investment hit a decade low in the first-half of the year at £1.8bn, down roughly two-thirds from the £5bn the year prior.cityam.com
- Revolut and Monzo teamed up with Shawbrook, Aldemore and other challenger banks to lobby for the surcharge threshold to £500m, from £100m.cityam.com
Why it matters
The UK's financial services sector is a key component of the national economy, and HM Treasury is responsible for setting the fiscal framework that dictates its growth. The current low in fintech investment and the calls for major tax changes signal that the industry perceives the current regulatory and tax environment as restrictive, potentially hindering future capital influx and company growth.
This lobbying effort is part of a broader push by top fintech unicorn chiefs to unlock new listings and improve access to capital. The Treasury is balancing the need to maintain global competitiveness with the need to manage public finances, making these industry demands a critical factor in upcoming Budget decisions.
What we don't know yet
- Will HM Treasury agree to abolish stamp duty entirely, or implement a compromise?
- How will the Chancellor respond to the specific lobbying demand to raise the surcharge threshold to £500m?
What would change this answer
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Reporting
- cityam.comOct 11
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