Minister gives green light to landmark skills projects

Industry leaders from the financial services industry have today convened in Whitehall to formally launch two landmark projects that will address the sector’s skills gaps and build the next generation of financial talent.

During a meeting between the Financial Services Skills Commission, senior industry executives, and Economic Secretary to the Treasury Lucy Rigby KC MP, work was kick-started on the creation of a sector skills compact, and research into artificial intelligence.

You can read the minister’s formal commissioning letter for the skills projects on the HM Treasury website.

The Skills Compact for Financial Services will accelerate progress towards a sector that has the skills it needs to thrive into the future.

Development of the compact is being led by the Financial Services Skills Commission, in collaboration with TheCityUK, the City of London Corporation, and Skills England. Set to be published in summer 2026, the compact recognises that the sector’s challenges cannot be addresses in isolation, and so will see industry and government working together to take concrete action on skills, in every region and nation of the UK.

The meeting, held at HM Treasury, served as the first session of the compact’s steering group, chaired by Commission Chair Mark Hoban.

The artificial intelligence research project, also led by the Commission, will assess the impact of AI and other disruptive technologies on the sector’s workforce, and subsequent skill needs over the next 5-10 years. Through the research, the Commission will recommend how action on skills can drive growth and productivity by supporting the adoption and innovation of AI, and other disruptive technologies, in financial services.

To ensure the research is robust and representative of the whole sector, the Commission has launched a call for evidence, and a series of regional roundtables. The work is being supported by Lloyds Banking Group, PwC, TheCityUK, and The City of London Corporation.

Economic Secretary to the Treasury, Lucy Rigby KC MP, said:
“We’re building the skills that will power Britain’s next wave of growth — giving firms access to the talent they need to invest and expand, and giving people the tools to get well-paid, high-skill jobs across the country.

“This Government is ambitious for this country and ambitious for the British people – that’s why we’re driving growth, unlocking investment and putting more money in people’s pockets through our Plan for Change.”

Mark Hoban, Chair of the Financial Services Skills Commission, said:

“The financial services sector continues to face unprecedented technological and demographic change. That’s why the need for urgent action on skills has never been greater than it is today.

“The creation of the skills compact, and our research into artificial intelligence, are landmark moments for the sector. They are an opportunity for government and industry to work together; to embrace innovation and AI, and secure the UK’s position as a global financial powerhouse.”

Sharon Doherty, Chief People and Places Officer, Lloyds Banking Group, said:

“As the UK’s largest digital bank, we are proud to join forces with government, industry leaders and the Financial Services Skills Commission to drive a new era of growth in UK financial services. AI and digital skills are at the heart of this transformation. The skills compact and the research into disruptive technologies will help lay the foundation for innovation and productivity, and ensure the UK remains the destination of choice for the next generation of financial talent.”

Sapna Patel, Partner – Financial Services, PwC, said:

“Financial services is vital to the UK economy. As AI reshapes the sector, access to key skills is essential for future success. Continued collaboration and investment in talent will help seize opportunities and tackle challenges. This research is a crucial step toward a competitive, resilient, and inclusive industry.”

Miles Celic OBE, Chief Executive Officer, TheCityUK, said:

“Skills and talent are at the heart of the UK’s ability to maintain its status as a world-class international financial centre. As technology and AI rapidly transform financial services, these initiatives will be key in ensuring the sector can continue to deliver growth and investment across the economy.”

Caroline Haines, Deputy Vice Chair, Policy and Resources at the City of London Corporation, said:

“Financial services are a cornerstone of the UK economy. As AI and disruptive technologies reshape the sector, investing in skills is essential to harness growth opportunities. The industry needs to collaborate to build a future-ready workforce, and we’re pleased to work with the Financial Services Commission and HM Treasury to help deliver this vital agenda.”