Written questions by Anderson.

What steps is taking to support UK participation in digital settlement markets.

The government is committed to making the UK a global hub for digital assets. It recognises the huge potential posed by tokenised asset innovation, and for stablecoins to support innovation in both retail payments and wholesale settlement. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets, including stablecoin, and maintaining a close and ongoing dialogue with the financial regulators as they develop detailed rules and guidance. This legislation complements other measures being taken forward by the government on digital assets, including: the Digital Securities Sandbox, which supports settlement using distributed ledger technology; the Digital Gilt Instrument pilot issuance; and the publication of the Wholesale Financial Markets Digital Strategy.

What assessment her Department has made of the potential impact of the regulatory approach on investor adoption of pound sterling based stablecoins.

The government is committed to making the UK a global hub for digital assets. It recognises the huge potential posed by tokenised asset innovation, and for stablecoins to support innovation in both retail payments and wholesale settlement. That is why the government is bringing in legislation to establish a new financial services regulatory regime for cryptoassets, including stablecoin, and maintaining a close and ongoing dialogue with the financial regulators as they develop detailed rules and guidance. This legislation complements other measures being taken forward by the government on digital assets, including: the Digital Securities Sandbox, which supports settlement using distributed ledger technology; the Digital Gilt Instrument pilot issuance; and the publication of the Wholesale Financial Markets Digital Strategy.

Whether she plans to establish benchmarks for improving access to affordable financial services among vulnerable consumers.

The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy. The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS). The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.

What assessment she has made of the adequacy of mechanisms in place to co-ordinate financial inclusion delivery across (a) central government and (b) regulators.

The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy. The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS). The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.

What estimate she has made of the resources allocated for data collection to support financial inclusion monitoring.

The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy. The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS). The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.

What discussions her Department has had with local authorities on identifying areas of financial exclusion for targeted support.

The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy. The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS). The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.

What steps she is taking to ensure that financial inclusion initiatives remain aligned with developments in (i) digital payments and (ii) banking.

The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy. The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS). The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.

What assessment her Department has made of the potential role of UK sovereign investment vehicles in facilitating co-investment opportunities with Gulf partners.

The Chancellor is committed to building strong relationships with Gulf countries and Sovereign Wealth Funds, as reflected in her attendance of the Future Investment Initiative Conference in Saudi Arabia. She engaged with key partners to explore opportunities that could benefit regions across the UK and progress negotiations on a free trade agreement with the Gulf Cooperation Council. The visit also helped unlock £6.4bn in two-way trade and investment between the UK and Saudi Arabia, including a £5bn MoU between UK Export Finance and the Saudi Public Investment Fund to support jobs and manufacturing across the UK. Attracting investment into every region of the UK is central to this government’s mission to drive national growth. Partnering with the private sector is essential and is why at the Regional Investment Summit last month the Chancellor announced the creation of the Sterling 20. The new grouping of institutional investors will further support mobilising institutional investment by raising awareness among investors of government-led programmes and initiatives. This will allow members to help shape and co-design investment opportunities, so they are attractive, unlocking capital for UK infrastructure throughout the UK.

What steps her Department is taking to strengthen financial sector co-operation between the UK and Gulf economies.

The UK has signed financial services Memoranda of Understanding with Saudi Arabia, the United Arab Emirates and Qatar – priority markets for the UK sector given the scale of growth and investment opportunities. The Chancellor recently visited Saudi Arabia to attend the Future Investment Initiative, where she promoted the UK’s modern Industrial Strategy, driving growth in the financial sector and the economy, advanced the UK’s Free Trade Agreement negotiations with the GCC, advocated for deeper UK-Saudi capital market connectivity, and unveiled a two-way investment package worth £6.4bn In negotiations for a Free Trade Agreement, the UK aims to secure the Gulf Cooperation Council’s most advanced financial services commitments yet, supporting increased trade between our markets. The Chancellor’s trip followed a visit from the then-Economic Secretary to the Treasury to Saudi Arabia and the UAE in February to discuss our financial service relationships. The first UK-Qatar Financial Services Working Group, as agreed under our MoU signed last year, took place on 3 November and focused on collaboration in capital markets, sustainable finance, fintech and pensions.

Whether her Department has identified priority regions for investment arising from recent Gulf trade agreements.

The Chancellor is committed to building strong relationships with Gulf countries and Sovereign Wealth Funds, as reflected in her attendance of the Future Investment Initiative Conference in Saudi Arabia. She engaged with key partners to explore opportunities that could benefit regions across the UK and progress negotiations on a free trade agreement with the Gulf Cooperation Council. The visit also helped unlock £6.4bn in two-way trade and investment between the UK and Saudi Arabia, including a £5bn MoU between UK Export Finance and the Saudi Public Investment Fund to support jobs and manufacturing across the UK. Attracting investment into every region of the UK is central to this government’s mission to drive national growth. Partnering with the private sector is essential and is why at the Regional Investment Summit last month the Chancellor announced the creation of the Sterling 20. The new grouping of institutional investors will further support mobilising institutional investment by raising awareness among investors of government-led programmes and initiatives. This will allow members to help shape and co-design investment opportunities, so they are attractive, unlocking capital for UK infrastructure throughout the UK.

What discussions she has had with the Bank of England on managing potential financial stability risks from increased Gulf investment in UK markets.

Increased investments from the Gulf states represent significant opportunities for the UK, supporting growth and innovation across the economy. The Chancellor’s recent visit to Saudi Arabia promoted the UK’s modern Industrial Strategy, advanced Free Trade Agreement negotiations with the Gulf Cooperation Council, advocated for deeper UK-Saudi capital market connectivity, and unveiled a two-way investment package worth £6.4 billion. Regarding potential financial stability risks, the Chancellor and the Governor of the Bank of England regularly discuss the financial stability outlook, including as required under the Bank of England Act 1998. Readouts of their discussions are published on GOV.UK.The Bank’s Financial Policy Committee (FPC), which is responsible for identifying and addressing systemic risks to the financial system as a whole, published its most recent Financial Stability Report in July 2025.

What steps her Department is taking to monitor delivery of the £6.4 billion of trade and investment commitments announced during her visit to the Gulf.

Whilst in Riyadh, the Chancellor welcomed a total package worth £6.4bn in mutual trade and investment. This included both private commercial deals and a Memorandum of Understanding between UK Export Finance (UKEF) and the Public Investment Fund (PIF) of Saudi Arabia. HMT will be able to monitor UKEF financial exposure in Saudi Arabia via regular reporting and UKEF’s annual accounts. Commercial agreements are a matter for the relevant companies.

What performance metrics she has set for the Scale-up Unit in relation to regulatory case resolution times for supported firms.

The Scale-up Unit is a joint initiative by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) to enhance engagement with fast-growing, innovative firms. It builds on existing regulatory support for early-stage innovative firms, including through the joint PRA and FCA New Bank and Insurer Start-up Units, to support firms as they seek to scale-up. The FCA and PRA will conduct further industry-wide engagement to gather input which will help shape the future direction of the Unit. Sir Ron Kalifa, in his 2021 Review of Fintech, identified a UK Fintech scale-up funding gap of £2 billion. The Financial Services Growth and Competitiveness Strategy set out measures to tackle this gap, including the launch of this Scale-Up Unit, and work led by the City of London Corporation and British Business Bank to facilitate greater access to finance and commercial opportunities for fast-growing Fintech firms.

How many innovative financial services firms are expected to access support from the Scale-up Unit in its first year of operation.

The Scale-up Unit is a joint initiative by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) to enhance engagement with fast-growing, innovative firms. It builds on existing regulatory support for early-stage innovative firms, including through the joint PRA and FCA New Bank and Insurer Start-up Units, to support firms as they seek to scale-up. The FCA and PRA will conduct further industry-wide engagement to gather input which will help shape the future direction of the Unit. Sir Ron Kalifa, in his 2021 Review of Fintech, identified a UK Fintech scale-up funding gap of £2 billion. The Financial Services Growth and Competitiveness Strategy set out measures to tackle this gap, including the launch of this Scale-Up Unit, and work led by the City of London Corporation and British Business Bank to facilitate greater access to finance and commercial opportunities for fast-growing Fintech firms.

What estimate her Department has made of the size of the UK FinTech scale-up funding gap.

The Scale-up Unit is a joint initiative by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) to enhance engagement with fast-growing, innovative firms. It builds on existing regulatory support for early-stage innovative firms, including through the joint PRA and FCA New Bank and Insurer Start-up Units, to support firms as they seek to scale-up. The FCA and PRA will conduct further industry-wide engagement to gather input which will help shape the future direction of the Unit. Sir Ron Kalifa, in his 2021 Review of Fintech, identified a UK Fintech scale-up funding gap of £2 billion. The Financial Services Growth and Competitiveness Strategy set out measures to tackle this gap, including the launch of this Scale-Up Unit, and work led by the City of London Corporation and British Business Bank to facilitate greater access to finance and commercial opportunities for fast-growing Fintech firms.

What assessment she has made of the adequacy of UK financial markets infrastructure to support further issuances of Islamic financial instruments.

The UK is the leading Western destination for Islamic finance businesses. The Islamic finance sector also has a role in the overall UK financial ecosystem by providing sharia-compliant products for the UK’s Muslim population as well as its contribution to the UK’s competitiveness as an Islamic finance hub. The Government aims to build the right environment to allow businesses to capitalise on growth opportunities in the UK and also promotes the UK’s capabilities and expertise overseas. For example, the Economic Secretary to the Treasury visited the UAE and Saudi Arabia in February 2025 and attended the UK-Saudi Arabia GREAT FUTURES Leadership Summit in September 2025. The Government is considering opportunities to support the Islamic finance sector through UK trade agreements with partners which have significant domestic markets for shariah-compliant finance, such as the Gulf Cooperation Council. The UK's two sovereign sukuk issuances have been successful in providing a platform for and helping to maintain the UK’s position as the leading western hub for Islamic finance while also supporting the UK’s Islamic banks. Given the development of the sector in the last decade and the relatively high cost of issuing sukuk, the Government is not at this time planning to issue another Sukuk after the current Sukuk matures in summer 2026. Officials continue to engage with industry and international partners to explore opportunities for synergies between Islamic finance and the sustainability agenda. Islamic financial instruments are covered under the same legislative and regulatory framework as their conventional equivalents, and the Government works to address any unintended differences that may arise.

What steps her Department is taking to promote UK-based Islamic finance capabilities in international markets.

The UK is the leading Western destination for Islamic finance businesses. The Islamic finance sector also has a role in the overall UK financial ecosystem by providing sharia-compliant products for the UK’s Muslim population as well as its contribution to the UK’s competitiveness as an Islamic finance hub. The Government aims to build the right environment to allow businesses to capitalise on growth opportunities in the UK and also promotes the UK’s capabilities and expertise overseas. For example, the Economic Secretary to the Treasury visited the UAE and Saudi Arabia in February 2025 and attended the UK-Saudi Arabia GREAT FUTURES Leadership Summit in September 2025. The Government is considering opportunities to support the Islamic finance sector through UK trade agreements with partners which have significant domestic markets for shariah-compliant finance, such as the Gulf Cooperation Council. The UK's two sovereign sukuk issuances have been successful in providing a platform for and helping to maintain the UK’s position as the leading western hub for Islamic finance while also supporting the UK’s Islamic banks. Given the development of the sector in the last decade and the relatively high cost of issuing sukuk, the Government is not at this time planning to issue another Sukuk after the current Sukuk matures in summer 2026. Officials continue to engage with industry and international partners to explore opportunities for synergies between Islamic finance and the sustainability agenda. Islamic financial instruments are covered under the same legislative and regulatory framework as their conventional equivalents, and the Government works to address any unintended differences that may arise.

Whether her Department has made an assessment of the potential merits of expanding the UK’s sovereign sukuk programme.

The UK is the leading Western destination for Islamic finance businesses. The Islamic finance sector also has a role in the overall UK financial ecosystem by providing sharia-compliant products for the UK’s Muslim population as well as its contribution to the UK’s competitiveness as an Islamic finance hub. The Government aims to build the right environment to allow businesses to capitalise on growth opportunities in the UK and also promotes the UK’s capabilities and expertise overseas. For example, the Economic Secretary to the Treasury visited the UAE and Saudi Arabia in February 2025 and attended the UK-Saudi Arabia GREAT FUTURES Leadership Summit in September 2025. The Government is considering opportunities to support the Islamic finance sector through UK trade agreements with partners which have significant domestic markets for shariah-compliant finance, such as the Gulf Cooperation Council. The UK's two sovereign sukuk issuances have been successful in providing a platform for and helping to maintain the UK’s position as the leading western hub for Islamic finance while also supporting the UK’s Islamic banks. Given the development of the sector in the last decade and the relatively high cost of issuing sukuk, the Government is not at this time planning to issue another Sukuk after the current Sukuk matures in summer 2026. Officials continue to engage with industry and international partners to explore opportunities for synergies between Islamic finance and the sustainability agenda. Islamic financial instruments are covered under the same legislative and regulatory framework as their conventional equivalents, and the Government works to address any unintended differences that may arise.

What assessment she has made of the potential impact of the UK’s Islamic finance sector on the Government’s objective of strengthening the UK’s position as a leading global financial centre.

The UK is the leading Western destination for Islamic finance businesses. The Islamic finance sector also has a role in the overall UK financial ecosystem by providing sharia-compliant products for the UK’s Muslim population as well as its contribution to the UK’s competitiveness as an Islamic finance hub. The Government aims to build the right environment to allow businesses to capitalise on growth opportunities in the UK and also promotes the UK’s capabilities and expertise overseas. For example, the Economic Secretary to the Treasury visited the UAE and Saudi Arabia in February 2025 and attended the UK-Saudi Arabia GREAT FUTURES Leadership Summit in September 2025. The Government is considering opportunities to support the Islamic finance sector through UK trade agreements with partners which have significant domestic markets for shariah-compliant finance, such as the Gulf Cooperation Council. The UK's two sovereign sukuk issuances have been successful in providing a platform for and helping to maintain the UK’s position as the leading western hub for Islamic finance while also supporting the UK’s Islamic banks. Given the development of the sector in the last decade and the relatively high cost of issuing sukuk, the Government is not at this time planning to issue another Sukuk after the current Sukuk matures in summer 2026. Officials continue to engage with industry and international partners to explore opportunities for synergies between Islamic finance and the sustainability agenda. Islamic financial instruments are covered under the same legislative and regulatory framework as their conventional equivalents, and the Government works to address any unintended differences that may arise.

Whether her Department has made an assessment of the potential contribution of Islamic finance to achieving the Government’s green finance and sustainability objectives.

The UK is the leading Western destination for Islamic finance businesses. The Islamic finance sector also has a role in the overall UK financial ecosystem by providing sharia-compliant products for the UK’s Muslim population as well as its contribution to the UK’s competitiveness as an Islamic finance hub. The Government aims to build the right environment to allow businesses to capitalise on growth opportunities in the UK and also promotes the UK’s capabilities and expertise overseas. For example, the Economic Secretary to the Treasury visited the UAE and Saudi Arabia in February 2025 and attended the UK-Saudi Arabia GREAT FUTURES Leadership Summit in September 2025. The Government is considering opportunities to support the Islamic finance sector through UK trade agreements with partners which have significant domestic markets for shariah-compliant finance, such as the Gulf Cooperation Council. The UK's two sovereign sukuk issuances have been successful in providing a platform for and helping to maintain the UK’s position as the leading western hub for Islamic finance while also supporting the UK’s Islamic banks. Given the development of the sector in the last decade and the relatively high cost of issuing sukuk, the Government is not at this time planning to issue another Sukuk after the current Sukuk matures in summer 2026. Officials continue to engage with industry and international partners to explore opportunities for synergies between Islamic finance and the sustainability agenda. Islamic financial instruments are covered under the same legislative and regulatory framework as their conventional equivalents, and the Government works to address any unintended differences that may arise.