CBI warns Budget bank tax rise would harm UK competitiveness

Summarised from 3 outlets · Updated 21 Oct, 00:20 · Archive

The Confederation of British Industry has warned that increasing tax on bank profits would damage Britain's economic competitiveness.

Rain Newton-Smith, chief executive of the Confederation of British Industry, has warned that further taxes on the financial sector would damage the UK's economic competitiveness. Speaking ahead of the Budget, she is calling on Chancellor John Healey to support growth in the financial sector rather than impose additional tax burdens.

Newton-Smith will argue that the financial services industry is 'a great British success story'. She will tell the CBI's London autumn reception at the British Museum that the sector supports more than 650,000 jobs outside the capital and adds more than £200 billion to the UK economy annually. She contends that the financial sector already faces a higher tax burden than other global centres.

The CBI boss will push for the Chancellor to help encourage private sector investment. She will say the Budget must be about 'giving business breathing space and backing wealth creation', arguing that this allows businesses to invest, hire and innovate. Her comments come amid speculation that the Government is considering increasing the surcharge on bank profits from 3% to 8%, reversing a tax cut for the sector launched by former chancellor Jeremy Hunt.

CBI warns Budget bank tax rise would harm UK competitiveness — Image: Evening Standard

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How it is being reported

Budget tax hikes for financial sector would be ‘own goal’, says CBIRain Newton-Smith, chief executive of the major business group, will call on Chancellor John Healey to give ‘business breathing space’.Evening Standard · 21 Oct, 00:01
Budget tax hikes for financial sector would be ‘own goal’, says CBIRain Newton-Smith, chief executive of the major business group, will call on Chancellor John Healey to give ‘business breathing space’.Independent Business · 21 Oct, 00:01
Budget tax raid on banks would be an 'own goal' for the UK economy, CBI warns HealeyIn a last-ditch pre-Budget plea, Confederation of British Industry chief Rain Newton-Smith argues that such a move would hurt Britain's competitiveness.This is Money · 20 Oct, 23:59

In this story: Confederation of British Industry · Rain Newton-Smith · John Healey · Jeremy Hunt · London · British Museum

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