Further City taxes could damage UK financial industry, banks claims

21 July 2010

Representatives from many top banks have claimed that the British government could damage the UK's financial services industry if further taxes are implemented.

The issue was discussed by executives from financial institutions at the first breakfast meeting with new Treasury minister Mark Hoban.

Senior banking professionals from the likes of Citigroup, JPMorgan, Goldman Sachs and Credit Suisse were in attendance

An unnamed attendee told the Financial Times: “We told him that competitiveness needs to be back on the agenda.

“But it was not an emotional discussion. It was all very level-headed. And Hoban did not push back. He was in listening mode.”

The comments follow the introduction of the banker bonus tax in December of last year, which charged banks a 50 per cent rate on every additional pay out over £25,000.

Alistair Darling, the then chancellor of the exchequer, predicted that the one-off levy would earn the government £550 million but the figure climbed to £2.5 billion.

Meanwhile, Mr Hoban recently launched a consultation document on implementing a further levy on the “balance sheets” of financial institutions which could also raise a further £2.5 billion for the government.

By Jim Ottewill


Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development