The UK Finance & Leasing Association (FLA) has released its 2024 Manifesto, outlining the substantial contribution made by FLA members to the economy and proposing measures to enhance this impact through better regulation, improved access to finance, the elimination of barriers, and making green investment the logical choice for businesses.
On the topic of regulation, the FLA highlights the need for modernising the Consumer Credit Act, which has been in place since 1974.
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The association argues that this outdated legislation, currently before Parliament for review, continues to hinder how businesses access financing today. Having successfully convinced the Treasury of the necessity for reform, the FLA aims to keep this issue a priority in the upcoming Parliament.
According to the FLA, access to finance encompasses more than just financial inclusion; it also involves fostering diversity among lenders to create healthy markets that offer choice and encourage competition.
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By GlobalDataThe association emphasises the adverse impact of overly strict affordability criteria, leading to a denial of market access for many consumers and prompting lenders to exit due to an unsustainable regulatory burden.
Despite the government’s Net Zero strategy for decarbonising all sectors of the UK economy being overshadowed by other political priorities, the FLA stresses that the 2050 commitment remains legally binding.
The Manifesto puts forward practical measures to accelerate the green transition, including establishing a taxonomy of green assets to instil confidence in businesses investing in sustainable practices.
In 2023, FLA members supplied £151 billion in new finance to the UK economy. It was noted that non-bank lenders contributed £63 billion to this overall amount. The segment related to business financing reportedly stood at £38 billion, with a notable £23 billion earmarked for SMEs to acquire new equipment, plant, machinery, or software. Consumer credit, as reported, constituted a substantial portion, amounting to £113 billion, with £52 billion reportedly allocated specifically to motor finance.
Stephen Haddrill, Director General of the FLA, said about the Manifesto: “Our recommendations on regulation, access to finance, and Net Zero would improve the business environment for members, restore the ability of more people to manage and smooth their finances, and position green investment as the feasible choice – logical in terms of the need to transition, and affordable.” The Manifesto signals the FLA’s commitment to shaping a regulatory landscape that fosters economic growth, financial well-being, and sustainable business practices.
