HM Treasury (HMT) has issued its response to the House of Lords Financial Services Regulation Committee's reply regarding the UK government's earlier response to the Committee's report "Growing Pains: Clarity and Culture Change Required". The UK government acknowledges the Committee's concerns and reaffirms its commitment to embedding secondary objectives for growth and competitiveness, underpinned by the Financial Services Growth and Competitiveness Strategy. It highlights key milestones such as the UK Financial Conduct Authority's (FCA) consumer duty review, the joint FCA-PRA scale-up unit, and research on disruptive technologies, alongside measures to streamline authorisations and support innovation. The letter responds to the Committee's concerns around: evidence linking financial sector growth to the wider economy; SME financing; regulator-government relationships; growth and performance metrics; and international comparisons. The government acknowledges challenges in producing robust international cost comparisons. A further update from HMT is expected in the summer of 2026.
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