Key facts
- UK Finance's report claims London has a 46.2% total tax rate for banks.
- Critics argue Paris, excluded from the report, would face a higher tax rate of 51.6% to 57.3%.
- The TUC proposed increasing the bank surcharge from 3% to 8% to raise £2.25 billion annually.
- Barclays CEO stated a tax rise would be "bearable".
A banking lobby group, UK Finance, is facing accusations of manipulating data to oppose a potential tax increase on financial institutions in the UK. The group's annual report, compiled by PwC, claims London has the highest "total tax rate" among major financial hubs at 46.2%. However, critics, including the Guardian newspaper and campaign groups like Positive Money and the TUC, argue that the exclusion of Paris, which would have a significantly higher tax rate, distorts the findings and serves the banks' interests in avoiding higher taxes.
UK Finance defended its methodology, stating that a robust like-for-like comparison for Paris was not possible with their model bank. Campaigners, however, view this omission as a deliberate attempt to make the case against fair taxation, especially as banks have seen increased profits due to higher interest rates. The TUC is advocating for an increase in the bank surcharge from 3% to 8%, which they estimate could generate £2.25 billion annually.
While Barclays CEO CS Venkatakrishnan suggested a tax rise would be "bearable," JP Morgan's Jamie Dimon has previously indicated that further levies could jeopardize investment plans in London.