UK: Towards lower bank taxes to save the city?

We must save the city of London. Finance Minister Rishi Sunak may announce a reduction in the current surcharge on banks from April 2023. He released his budget guidelines on October 27, the Financial Times, Wednesday, October 20. Finance Minister “to maintain the competitiveness of the city of London internationally from April 2023 to 8% from Brexit onwards.” Will be reduced to 3%, ”the Finance Minister said daily. Budget Information “Sources.

The move will reduce banks’ impact on the corporate tax hike announced by Rishi Sunak in March, which will rise to 25% by 2023 and currently 19%. By lowering the ceiling, banks will increase their tax rate by only one point from 27% to 28%. The finance ministry, which was contacted by the AFP, said it had not commented on tax policy before the budget was submitted.

“Historical” increases

But President Rishi Sunak announced in a speech in July that the bank would like to “reconsider the surcharge”. “The consolidated tax rate on UK bank profits is not expected to increase significantly from its current level,” he said at the time. As the country recovers from the shock of the epidemic, the treasury president, eager to restore the financial legacy, announced several tax hikes.

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In addition to the corporate tax, it offers a 1.25% increase in social security contributions, which will weigh on both employees and employers from April 2022. Camp.

But despite these “historic” increases, the IFS Research Center warned last week that the Treasury president would have some margins to bail out public services under pressure. According to the IFS, the Minister of Finance should target spending, especially the health sector and some other government priorities such as carbon neutrality, which the British government wants to achieve by 2050.

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