Autumn Budget 2026: bank tax will put the City’s success at risk
It is 40 years since the Big Bang unleashed London to become the global financial centre that it is, but by hammering the sector with windfall taxes, John Healey risks putting that success at risk, says Chris Hayward Nigel Lawson’s Big Bang took London from a globally competitive financial and professional services sector to what [...]
Forty years after the Big Bang transformed London's financial markets, Chancellor John Healey risks jeopardizing the UK's prosperity by imposing higher taxes on the financial sector, argues Chris Hayward, policy chairman at the City of London Corporation. The sector, already contributing 12% of the UK's taxes, funds essential government priorities such as removing the two-child benefit cap and capping bus fares.
Should the budget increase this tax burden, the effects will reverberate beyond the City of London, impacting jobs and economic growth across the nation. With over 2.5 million people employed in financial and professional services, two-thirds outside of London, the financial sector's decline could severely hinder the UK's economic prospects.
International banks, already facing high taxes, may relocate, and domestic banks may lend less to small and medium-sized enterprises, stifling growth. The Chancellor should focus on expanding financial services' contribution to the economy rather than diminishing it by increasing taxes. Additionally, the government should abolish stamp duty on shares and simplify regulatory requirements to boost the UK's competitiveness and make capital markets more attractive to investors.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
