Chris Barlow, head of legal and compliance at Japanese bank Nomura, has warned that "short-termism and political point-scoring" in Westminster over financial regulation could jeopardise investment in the UK's financial sector. Barlow stated that a disjointed and politicized regulatory approach makes it difficult for banks to operate and support clients, potentially leading them to seek operations elsewhere if they feel unfairly treated.
These concerns echo reports that JP Morgan CEO Jamie Dimon had threatened to reconsider plans for a significant new £3bn European hub in Canary Wharf if the Labour party intensified its regulatory grip on the City of London. Barlow emphasized that such short-sightedness is detrimental to all parties involved.
Barlow's remarks align with growing apprehension within the financial industry that a Labour government might seek to increase taxes on banks. Ana Botín, CEO of Santander, previously argued that the UK tax regime should not specifically target lenders, noting that banks already face a high corporate tax rate of around 30% and do not generate windfall profits. City banks are subject to various taxes, including a sector-specific levy and surcharge on top of standard corporation tax.
