Powering Prosperity: Why Investment in Skills is Our Future

First published in Finextra on 18th August 2025

By Julia Streets, MBE - CEO of Streets Consulting and Founder of SoftskillingIt

To truly maintain the UK’s competitive edge and continue its legacy of innovation, a highly skilled and adaptive workforce isn't just a nice-to-have – it's an absolute must. This is, of course, true for any country in the world, but honing in on the UK,  last month the UK government set out a very clear strategy to build and attract the skills we need to remain at the forefront of global innovation.

Skills are a clear priority emerging from the Chancellor’s Financial Services Growth & Competitiveness Strategy, released in July 2025. 

The UK government is committed to reversing the trend of falling employer spending on training and supercharging investment in skills across financial services and beyond. This overarching strategy was unveiled by Chancellor Rachel Reeves as a central part of the wide-ranging "Leeds Reforms" aimed at rewiring the financial system for growth.

A Shared Vision for Growth

There's a palpable drive to ensure the UK workforce is truly future-ready. This isn't a piecemeal effort; it's a cohesive strategy designed to cultivate a dynamic and adaptive talent pool. At its heart is the recognition that a skilled workforce is paramount to innovation, global leadership, and competitiveness.

Investing in Our People, Locally & Nationally

A core part of this strategy involves nurturing our homegrown talent. We're seeing a significant push towards upskilling and reskilling to help individuals keep pace with rapidly evolving business models and the widespread adoption of new digital and technology advancements. This commitment extends to our youth, with new foundation apprenticeships and a substantial £1.2 billion of additional annual investment by 2028-29 aimed at supporting high-quality education and training for young people. And let's not forget the national network of Jobcentres, which are playing a crucial role in connecting employers with a diverse pool of talent, many of whom already hold degree-level qualifications.

Collaboration is key

As part of the ongoing effort, bodies like Skills England are working tirelessly to bring coherence to the skills landscape, simplifying processes and mobilising employers and partners to co-create solutions that meet national, regional, and local needs. Complementing this, the Financial Services Skills Commission (FSSC), in partnership with TheCityUK and the City of London Corporation, is developing a sector-led "skills compact". This compact, also announced as part of the "Leeds Reforms", aims to accelerate progress and ensure the financial services sector has the capabilities it needs to thrive, with an expected launch in Summer 2026. This collaborative spirit also fosters strong links between universities, post-16 education institutions, and industry itself.

Embracing the Tech Revolution

Recognising the transformative power of emerging technologies, the FSSC has been specifically commissioned to produce a comprehensive report on AI skills needs, training, and innovation within financial services. The report, also part of the "Leeds Reforms", is targeted for completion in early to mid-2027. Furthermore, the £187 million TechFirst programme, also announced as part of the "Leeds Reforms", is set to bolster financial services clusters across the UK. This initiative will foster innovation and talent in strategic technology areas like AI and cybersecurity, while simultaneously creating valuable opportunities for young people, graduates, and researchers.

Attracting Global Talent

To ensure we can always access the "brightest and best" talent from around the world, several initiatives are underway. As stated in the Financial Services Growth & Competitiveness Strategy, the government is committed to widening access to visa routes that enable high-skilled talent to work in the UK, including improvements to the Global Talent visa and High Potential Individual visa, and exploring reforms to the Innovator Founder visa. 

A new Global Talent Taskforce is also being established to provide a concierge service, attracting top international talent, including entrepreneurs, investors, and top-tier managers, and will formally launch by October 2025. Even reforms to streamline the Senior Managers and Certification Regime (SMCR), which were announced by Chancellor Rachel Reeves on 15 July 2025 as part of the "Leeds Reforms", are contributing by making it quicker and easier to bring in overseas talent, all while maintaining our high standards. The ambition, as outlined, is to reduce the overall burdens on firms by 50%.

Nurturing Regional Powerhouses

This commitment isn't just confined to London; it extends across the entire UK. Regional financial services clusters, like Glasgow's International Financial Services District (IFSD), exemplify how exceptional skills and talent, coupled with strong partnerships with local universities, create vital talent pipelines that sustain long-term growth and high-skilled jobs nationwide. 

The new ‘Office for Investment: Financial Services’, also part of the "Leeds Reforms", will work hand-in-hand with Skills England to promote all UK nations and regions as attractive locations, helping to create better skills and better jobs across the country. This service will formally launch by October 2025.

The dedication to developing a future-ready, highly skilled workforce is unequivocally strong. By investing in our people, fostering robust collaborations, and proactively embracing technological change, the UK financial services sector is brilliantly positioned to continue its legacy of innovation and leadership on the global stage, delivering prosperity for us all.