City warns Labour's tax plan

UK finance groups warn higher bank taxes could trigger capital and talent exodus as Labour prepares for Budget.

“As well as weakening investor confidence and damaging UK attractiveness, a higher tax burden may not necessarily generate higher tax receipts if capital, people and businesses move elsewhere”

Chancellor Healey meets banks

Chancellor John Healey summoned top bank bosses to Downing Street amid warnings of a 'challenging fiscal picture'.

Tax rates comparison

UK banks pay 46.5% tax versus 27.9% in New York and 39% in Frankfurt.

Billionaires flee UK

Billionaires with £120 billion assets have fled the UK since Labour started raising taxes.

Business groups' warning

Five finance groups warn tax hikes could undermine UK growth and financial services competitiveness.

“A tax raid would also buck the trend of some countries reviewing their regulations to try to make conditions more competitive for banks”

Tax impact on lending

Higher taxes risk reducing finance and insurance availability for households and businesses.

“The letter warned that UK lenders are already paying higher taxes, at a rate of around 46.5 per cent, than those in rival financial centres”

Call for tax certainty

Business groups urge government to pledge no further bank taxes to protect UK financial services.

“With the right regulatory policy and taxation framework, UK financial and related professional services can play an even greater role in delivering investment, prosperity and resilience across every region and nation of the UK”