Welcome to The Fiscal Dispatch, Atticus Partners’ financial services newsletter. Once a month, we cover topical stories relating to financial services (FS) in Westminster and Whitehall.
In his edition, we explore possible changes to the ISA landscape, adoption of Bitcoin by Blackrock, Reform UK’s foray into crypto, and more.
Reform UK explores opportunities to champion crypto
Cryptocurrency was firmly on Reform UK’s mind this month, with party leader Nigel Farage pledging to act as a “champion” for the digital asset industry at the recent Digital Asset Summit 2025. Referencing Reform UK’s ‘Cryptoassets and Digital Finance Bill’, published in May, Farage outlined how the party will lead a “post-Brexit roadmap to make the United Kingdom the world’s premier hub for cryptocurrency and blockchain innovation”. Farage further emphasised how the plan would slash the rate of capital gains tax and allow payment of taxes with crypto.
Although critics are saying Farage’s plan is simply a mirror of comments made by US President Donald Trump, who has been broadly an advocate for crypto, seeing it as both a political asset and part of the US’s economic strategy, this is unlikely to deter Reform UK’s advocacy for digital assets.
Further highlighting Reform UK’s desire to champion cryptocurrency, this month it became the first political party in the UK to accept donations via digital assets. Despite Reform UK stating that all crypto donations must comply with Electoral Commission rules, experts have raised concerns about the traceability and transparency of these funds. With cryptocurrency being a very topical issue for all political parties, there is potential for Reform UK to be further challenged on its acceptance of digital asset donations, as politicians and regulators issue concerns about “foreign interference” or “anonymous” funding.
BlackRock announces bitcoin ETP for UK investors
Global investment company BlackRock is set to launch its first bitcoin exchange-traded product (ETP) for UK retail investors on the London Stock Exchange, after the Financial Conduct Authority (FCA) eased its long-standing ban on certain crypto-linked investment vehicles.
The product is the iShares Bitcoin ETP and will allow UK investors to gain access to bitcoin trading without directly holding the cryptocurrency. As the underlying asset can be broken into fractions, the entry-cost for exposure is relatively modest, with U.S. fund equivalents starting at about US$11 for one unit.
This move follows the FCA’s reversal of its policy on crypto exchange-traded notes (ETNs). Previously, the regulator had banned retail access to crypto ETNs including bitcoin-linked products. However, this month, the FCA began permitting listed crypto ETPs on regulated venues for retail investors. BlackRock’s ETP had already been available in mainland Europe, including in Germany, France, and the Netherlands.
This product launch highlights BlackRock’s belief in a growing demand for ETPs. It is estimated that currently around 7 million people in the UK have already invested in cryptocurrencies, and the company predicts the number of bitcoin investors could reach 4 million by the end of the year. The ETP listing is also timely given other regulatory changes, such as the UK proposed crypto-asset regulatory regime, under which would mean British crypto exchanges, dealers and agents will have to meet clear standards on transparency, consumer protection and operational resilience.
BlackRock’s foray into the ETP market in the UK builds on strong recent financial performance. The firm’s U.S.-listed bitcoin ETF has nearly US$85 billion in assets under management and has helped drive net inflows into its digital-asset products and take its total AUM beyond US$13 trillion globally.
Due to a combination of recent regulatory changes and a major asset manager’s product launch, UK retail investors now have a regulated means of accessing bitcoin exposure via familiar brokerage platforms, potentially opening the way for wider adoption of crypto-linked products in the UK.
Gold’s Gains Boost Emerging Markets
A historic surge in gold prices is delivering unexpected benefits across emerging markets, fuelling investor optimism and strengthening national economies that both mine and buy the precious metal.
South Africa and Ghana are among the standout winners, with South Africa’s stock market heading for its strongest year in two decades. The country’s mining giants such as Sibanye Stillwater, AngloGold Ashanti and Gold Fields are seeing their share prices triple. The rand is trading near a one-year high, inflation is easing, and bond yields have dropped below 9% for the first time in seven years, a sharp turnaround for a nation long plagued by power shortages and political uncertainty.
In Ghana, the world’s top African gold producer, Moody’s has upgraded the country’s credit rating following economic reforms and a recovery led by President John Mahama. The cedi has surged 38% this year - the biggest rise of any currency globally.
Uzbekistan, another key bullion producer, is also benefiting from the rally. Portfolio managers say strong gold reserves are supporting the country’s currency and investor confidence.
Analysts note that countries such as Poland, Turkey and Kazakhstan, which have been increasing their gold holdings, also stand to gain.
However, some caution that rising gold prices alone do not automatically translate into stronger credit fundamentals. The rally comes as the US dollar weakens and global financial conditions ease - a combination that has flipped the usual pattern where higher gold prices signal risk aversion. This time, emerging markets are emerging as clear winners.
As Daniel Wood of William Blair Investment Management put it: “Investors are increasingly seeking alternatives to traditional developed market currencies, particularly the US dollar - and gold is proving to be that safe haven.”
Reeves Eyes Major ISA Overhaul to Boost UK Investment
Chancellor Rachel Reeves is preparing the most significant shake-up of the UK’s tax-free savings system in 25 years, with plans to change cash ISA deposit limits with the aim of redirecting billions of pounds into British equities. The proposals, which would form part November’s Budget, aim to cultivate a stronger investment culture and revive the struggling London Stock Exchange.
Under these plans, the annual cash ISA limit could be halved from £20,000 to £10,000, while the overall £20,000 allowance would remain unchanged. The Treasury has also floated removing the 0.5% stamp duty on UK-listed shares held within ISAs and potentially requiring that a minimum share of stocks-and-shares ISAs be invested in British companies.
Reeves argues that channelling more savings into equities would “get Britain investing again,” boosting both company growth and long-term returns for savers. It appears to be in the interest of consumers, as Treasury modelling suggests that savers who invested £1,000 annually in shares since 1999 would now have £83,000, more than double the return from a cash ISA.
However, the reforms face political and practical resistance. The Building Societies Association has warned that cutting the cash ISA allowance would be “counterproductive” to Reeve’s objectives of creating a stronger investment culture, ultimately harming savers, the housing market and the wider economy. It is worth recalling how unpopular proposed changes to the ISA landscape were amongst banks and building societies when the policy was leaked earlier in the year.
This set of proposed changes, however, appears to be more coherent. Reeves’s challenge is to balance pro-growth ambition with fairness to cautious savers. There is an interesting question, raised earlier in the year regarding the Leeds Reforms to pensions, about whether the government is prioritising mandating other people’s money over fiduciary duty and maximising return. Her critics may portray any cash ISA cap as an injustice for savers, while supporters argue the reforms signal a modern, growth-focused government committed to making Britain’s markets more dynamic.
If Reeves can persuade the public that investing in Britain means investing in themselves, her ISA overhaul could become a critical moment in Labour’s economic reset. But mishandled, it risks becoming a flashpoint over middle-class savings and trust in the government’s stewardship of personal finances.
City chiefs urge calm ahead of Reeves’ crunch Budget
Bank bosses are urging the Treasury for policy clarity and predictability as Chancellor Rachel Reeves prepares to deliver the Autumn Budget on 26 November, a meeting that could determine whether the City’s recent rebound is met by higher taxes.
The sector’s plea comes against a worrying fiscal backdrop: public finances showed a £62bn shortfall in the April–August period, a miss that tightens the pressure on the November package and fuels speculation about new levies on banks and wealthy households.
Senior executives from Barclays, J.P. Morgan and Citi told reporters that they want “stable, harmonious” tax and regulatory settings so London remains competitive. Barclays’ chief warned against “milking the financial sector”, arguing heavy-handed taxation risks choking investment and jobs - a message the industry is repeating directly to ministers.
Ministers can point to glimmers of success: recent claims of £150bn in inward investment from US companies have been trumpeted as a vote of confidence in the UK as a listing and capital-raising venue. But bank chiefs say one-off deals won’t substitute for a durable framework that keeps costs, capital rules and tax policy predictable.
Financial and related professional services account for roughly £110bn in tax contributions - around 10–12% of total UK tax receipts - so policy choices that hit profitability can have outsized effects on public revenue and jobs. That is exactly why ministers tread carefully when weighing sector-specific levies.
Banks want rules that are consistent across time and jurisdictions; revenue grabs could prompt credit rationing, slower hiring or fewer IPOs. Expect the industry to keep up pressure through November, framing the debate around long-run competitiveness rather than short-term fiscal fixes.
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