Financial regulators are a prominent part of Britain’s quango landscape. Operating at arm’s length from ministers, they oversee markets, firms and consumers, with their responsibilities spanning monetary stability prudential supervisions, competition and conduct. In recent years, their size and influence have grown considerably, reflecting an ongoing expansion of the regulatory state. Over the same period, however, UK economic growth has remained weak, averaging 1.4 per cent per annum from 2015 to 2024.[1]
These regulators are sustained by significant budgets, with resources allocated to staffing, oversight and enforcement activities. Rising staff numbers and costs highlight the scale of their operations, while increases in income and expenditure point to their growing role in the wider economy. While they may appear independent of day-to-day government spending, their costs ultimately impact businesses and consumers, with implications for economic growth and competitiveness. Understanding these trends is central to assessing the accountability of regulators and the burden their growth places on taxpayers.
This note examines the growth of five major financial regulators between 2015-16 and 2024-25: the Bank of England (BoE), Competition and Markets Authority (CMA), Financial Conduct Authority (FCA), Payment Systems Regulator (PSR) and Prudential Regulation Authority (PRA).[2],[3] Using figures from the respective annual accounts for each organisation, it tracks changes in income, expenditure, staff numbers and staff costs over the period.
READ THE BRIEFING NOTE
Key findings
- Between 2015-16 and 2024-25, the FCA’s income rose from £554 million to £820 million, an increase of £266 million. This is the largest cash terms increase among the regulators examined, and a rise of 48 per cent.
- The FCA had the largest increase in expenditure in cash terms, increasing by £230 million, or 42 per cent, from £543 million to £774 million between 2015-16 and 2024-25.
- The BoE had the smallest percentage increase in expenditure between 2015-16 to 2024-25, rising by 30 per cent. In cash terms, expenditure rose from £393 million to £511 million. This was impacted by the PRA’s status change from a subsidiary of the BoE to being integrated into the bank from March 2017.[4]
- The largest percentage increase in expenditure was by the PSR rising by 166 per cent between 2015-16 to 2024-25. In cash terms, expenditure increased from £11 million to £28 million.[5]
- The PSR had the largest percentage increase in headcount between 2015-16 and 2024-25, at 198 per cent.[6]
- The FCA’s staff costs increased the most in nominal terms, from £324 million to £492 million between 2015-16 and 2024-25, a 52 per cent or £168 million rise.
- The PSR had the largest percentage increase in its staff costs, rising by 207 per cent, from £7 million to £20 million between 2015-16 and 2024-25.[7]
- Since 2015-16, the FCA’s headcount has risen from 3,285 to 5,434 in 2024-25, a 65 per cent increase. This is the largest rise in staff headcount with more than 2,100 employees added.
READ THE BRIEFING NOTE
[1] Office for National Statistics, Gross Domestic Product: Year on Year growth: CVM SA %, 14 August 2025, www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/ihyp/pn2 (accessed 29 September 2025).
[2] The government has announced that the PSR will be abolished and its functions integrated into the FCA.
[3] Prime Minister's Office, Regulator axed as red tape is slashed to boost growth, Gov.uk, 11 March 2025, www.gov.uk/government/news/regulator-axed-as-red-tape-is-slashed-to-boost-growth (accessed 5 November 2025).
[4] The decrease in total expenditure reflects the removal of internal recharges between the BoE and the PRA after the PRA was incorporated into the BoE, meaning those costs are no longer recorded as separate expenses in the Bank’s accounts.
[5] The PSR became fully operational in 2015–16.
[6] Ibid.
[7] The PSR became fully operational in 2015–16.