Infotech

London ready for a fiscal gesture to preserve the competitiveness of the City



Posted on Oct 25, 2021 5:36 PMUpdated Oct 25, 2021, 6:12 PM

This is not the financial deregulation that some “Brexiters” dreamed of. On the occasion of the presentation of his budget this week, Rishi Sunak could nevertheless make a gesture to the attention of the City to preserve the competitiveness of a banking sector providing significant tax revenues. The Chancellor of the Exchequer is expected to respond on Wednesday to a long-standing demand from the financial lobby to reduce the tax surcharge paid by banks.

Created in 2015 by his predecessor George Osborne to compensate at the time for a reduction in tax on bank balance sheets, this surcharge corresponds to a levy of 8% on profits, in addition to corporate tax. TheCityUK, which represents the interests of British banks, asked in a letter to Rishi Sunak at the end of September to abolish this surcharge “to bring the effective tax rate paid by banks in the United Kingdom to a closer level. that paid by its competitors in the United States, Germany and the Netherlands ”.

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