Fintech boss outlines industry’s Spring Statement needs
With the Chancellor’s Spring Statement under a week away, a fintech boss has laid out how the government must support the industry.
Laurent Descout, co-founder and chief executive of payments platform NEO, said Rachel Reeves must prioritise support for the fintech sector through two key areas: university funding and helping small and medium-sized enterprises (SMEs).
“There’s no room for complacency,” Descout told City AM.
“To maintain its competitive edge, London must continue to embrace technological innovations that bolster its fintech ecosystem.
“This means investing in the foundations, including supporting SMEs and nurturing emerging talent who will drive the next wave of innovation in the sector.”
In February, 393 SMEs were forced into closure across England and Wales, the highest monthly figure since September 2014, according to the Insolvency Service.
Descout said this highlighted the “immense pressure” upon small businesses and called on the government to help young fintechs “not just survive but thrive”.
His wish list for the Spring Statement includes permanent full expensing of equipment, stable tax policies and unhindered access to investment.
The capital gains tax rate on gains eligible for Business Asset Disposal Relief (BADR) will rise from 10 per cent to 14 per cent on April 6, with an additional increase to 18 per cent planned for April 2026.
Descout said: “This increase could deter investors from backing high-growth SMEs and fintechs.
“It would make it harder for startups to scale, secure funding, and progress to IPOs or secondary share sales.”
As the UK fintech industry fights to dominate the global stage, Descout warned a lack of investor confidence could stall innovation.
His calls follow recent snubs to the London market, with leading fintech Revolut looking to the US for a listing, after claiming a UK IPO was “not rational”.
Universities crucial to fintech sector
Descout identified UK universities as a pipeline producing “world-class technical talent” and “driving cutting-edge research” for startups.
“Financial pressures on universities now pose a direct risk to the UK’s fintech ecosystem,” he added.
The fintech boss said high-growth firms were reliant on the skills of graduates across AI, data science and engineering.
“If universities struggle, so will the UK fintech sector’ ability to compete globally,” Descout said.
For the UK to maintain its position as a global fintech leader, Descout called on the government to “commit to sustainable university funding”.
He added the expansion of research and development tax incentives alongside strengthened support for companies launched by academics would also improve universities’ ability to aid fintech.
“London is quickly positioning itself as a leading global financial hub, with its strong appeal to fintech and startup companies looking to go public.
“The city benefits from a deep talent pool, fuelled by top-tier universities, and a diverse range of investors, making it an ideal location for launching and scaling fintech businesses.”