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2 clusters · 5 sources · 29 days · First seen · Last updated

UK banking sector tax competitiveness debate

Overview

The UK banking industry has raised concerns regarding the potential impact of windfall taxes and existing tax burdens on the nation’s international competitiveness. In submissions ahead of the October 28 Budget, the lobby group UK Finance warned Chancellor John Healey that new taxes could drive capital and jobs away from London while increasing mortgage costs for households.

Research conducted by PwC and UK Finance highlighted that the effective tax rate for a typical corporate and investment bank in London is approximately 46.2% to 46.6%. This rate is notably higher than those in other major financial hubs, such as Amsterdam (42.2%), Frankfurt (39.1%), Dublin (29%), and New York (27.9%).

While the Trades Union Congress has advocated for reversing previous tax cuts, industry leaders have called for tax stability to support economic growth. The banking sector, which employs roughly 500,000 people, contributed £47.8 billion in total taxes, representing 4.3% of the UK’s total tax revenue.

Entities

UK Finance · PwC · David Postings · Bank of England · Trades Union Congress

Timeline

  1. [BUSINESS] 4 sources
    UK banking sector reports higher tax rates than international competitors

    A UK Finance and PwC report reveals the British banking sector faces a 46.2% tax rate, exceeding major hubs like Amsterdam, Frankfurt, and New York.

  2. [BUSINESS] 2 sources
    UK banking industry warns windfall tax could harm competitiveness

    UK Finance has warned the Chancellor that proposed windfall taxes on banks could harm London's competitiveness, increase mortgage rates, and reduce lending capacity.

Sources

ekoturk.com · eleconomista.com.ar · europeanbusinessmagazine.com · expansion.com · independent.co.uk