FLA urges new Chancellor to modernise lending rules to unlock UK investment

The Finance & Leasing Association (FLA) has called on the new Chancellor, John Healey, to make reform of the Consumer Credit Act one of the Government’s first economic priorities, arguing that outdated lending rules are restricting business investment and slowing economic growth.

Congratulating Healey on his appointment, the FLA said modernising consumer credit legislation would remove unnecessary barriers to commercial lending while maintaining the UK’s high standards of customer protection.

The trade body said current regulations continue to apply elements of consumer credit legislation to some forms of business lending, creating unnecessary complexity and additional compliance costs without delivering better outcomes. A regulatory framework designed specifically for commercial finance, it argued, would improve access to responsible funding, encourage investment and support innovation across the UK economy.

The call coincides with the publication of the FLA’s 2026 Impact Report, The Hidden Engine Behind UK Growth, which highlights the contribution specialist finance makes to businesses, consumers and communities throughout the UK.

According to the FLA, its members provided £163 billion of new lending during 2025, followed by a further £42 billion in the first quarter of 2026. The finance supported investment in vehicles, machinery, equipment and technology, helping businesses improve productivity, create jobs and drive economic growth across every nation and region of the UK.

“The Government has rightly made economic growth its priority. Achieving that ambition means giving businesses the confidence to invest, backed by a regulatory framework that supports rather than hinders growth.

“Last year alone, our members provided £163 billion of finance, helping farmers invest in new technology, manufacturers purchase advanced equipment, businesses acquire vehicles and machinery, schools improve their facilities and millions of consumers access affordable finance for essential purchases.

“These are not isolated examples. They demonstrate the vital role specialist finance plays in supporting investment, productivity and jobs across the UK.

“Modernising the Consumer Credit Act would create a simpler, more proportionate regulatory framework that reflects today’s economy, improves access to responsible finance and helps deliver the Government’s ambitions for sustainable economic growth.”

The FLA said reforming the Consumer Credit Act would help unlock investment by reducing unnecessary regulatory burdens on business lending, enabling specialist finance providers to better support businesses looking to invest, expand and innovate.

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