Greg Taylor, Head of Banking and Finance at MHA, comments on the Enhancing Financial Services Bill in the King’s Speech:
From a debt advisory perspective, the Enhancing Financial Services Bill is for me a clear indication that the Government wants the UK banking and lending market to become faster-moving, more competitive and more growth focused. For UK businesses, particularly SMEs, the most important element is the commitment to improving access to finance while reducing unnecessary regulatory complexity. Over recent years, we have seen that many lenders have become increasingly process driven and risk averse, slowing decision-making and limiting the flow of capital into the real economy. Measures designed to streamline regulation, improve accountability and revisit aspects of the ring-fencing regime have the potential to unlock additional lending capacity and stimulate greater competition across the SME finance market – competition in this space is a good thing and drives better outcomes, not only for UK businesses but also the UK economy.
The wider ambition behind the reforms is equally significant. The UK remains one of the world’s leading financial centres, but growth within the sector has stalled relative to international competitors. Businesses need a funding ecosystem that is commercially agile, technologically modern and capable of supporting investment, acquisitions and long-term expansion at pace. While strong consumer protection and regulatory oversight remain critical, there is increasing recognition that regulation must also support growth and innovation rather than simply control risk. If delivered effectively, and only time will tell, these reforms could improve lender confidence, accelerate credit decisions and broaden funding availability across the mid-market – all of which would be a welcome development for UK businesses seeking to invest and grow in an increasingly competitive global economy.
Among its UK-wide locations, accountancy and business advisory firm MHA has offices in Edinburgh and Aberdeen.
