Outdated lending rules are holding back UK investment, new chancellor told
Modernising outdated consumer credit rules that affect business lending should be one of the new chancellor’s first economic priorities if the government is serious about unlocking investment and delivering sustainable growth, the Finance & Leasing Association (FLA) said today.
Congratulating John Healey on their appointment as chancellor of the Exchequer, the FLA said reforming the Consumer Credit Act would remove unnecessary barriers to business finance, making it easier for firms to invest while maintaining the UK’s high standards of customer protection.
FLA members provided £163bn of new lending in 2025, followed by a further £42bn in the first quarter of 2026 alone. That finance helped businesses invest in vehicles, machinery, equipment and technology, improving productivity, creating jobs and supporting economic growth across every nation and region of the UK.
The FLA said the current regulatory framework applies consumer credit rules to some business lending, creating unnecessary complexity and compliance costs without improving outcomes. A more proportionate regime, designed specifically for commercial finance, would improve access to responsible finance, encourage investment and support innovation.
The call comes as the FLA publishes its 2026 Impact Report, The Hidden Engine Behind UK Growth, which highlights the contribution specialist finance makes to businesses, consumers and communities across the UK.
The report showcases how specialist finance supports investment across the economy, including:
A third-generation dairy farm in West Wales investing in technology to improve productivity and reduce costs.
A Northern Ireland aerospace tooling specialist purchasing advanced manufacturing equipment to strengthen its international competitiveness.
Schools and education providers investing in improved facilities.
Businesses financing commercial vehicles, machinery and equipment to expand and modernise.
Households using responsible finance to spread the cost of essential purchases.
Shanika Amarasekara, chief executive of the FLA, said: “We congratulate John Healey on their appointment as Chancellor of the Exchequer and wish them every success in the role.
“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 £163bn 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.”