Top City chiefs are launching last-ditch attempts to stop a punishing tax raid on banks at the Budget. Rain Newton-Smith, the chief executive of the CBI, is set to warn Chancellor John Healey that increasing taxes on banks would be an “own goal for our competitiveness”. The intervention comes as Healey is poised to raise taxes on the banking sector in his forthcoming Budget.
City chiefs warn Healey higher bank taxes hurt jobs outside London
UKPulse Money DeskTop City chiefs are launching last-ditch attempts to stop a punishing tax raid on banks at the Budget, warning the move will hurt jobs and growth outside of London.
- Banks are already charged at higher rates than other sectors in the face of the banking surcharge
- A reversal of this move is expected to raise £2bn a year for the Treasury
- Industry bosses warn that increasing taxes on banks would reduce lending, weaken international investment, and result in lost economic activity
Why this matters: The move could have significant implications for jobs and growth outside of London, with industry bosses warning that it could reduce lending and weaken international investment.
What this means for you: If higher bank taxes are implemented, it could lead to reduced lending and investment in your area, potentially affecting local job opportunities.