UK Finance Accused of Cherrypicking Data to Block Bank Tax
UK Finance faces accusations of omitting Paris from a tax report to make London appear more tax-intensive and discourage government tax hikes.
Banking lobby group UK Finance is facing accusations of manipulating data to discourage the British government from raising bank taxes in the upcoming budget. A PwC report commissioned by the group claims London is the most tax-intensive financial hub with a 46.2% total tax rate, surpassing New York and Dublin.
Campaign groups and calculations by the Guardian suggest the report intentionally omitted Paris, which is estimated to have a higher total tax rate between 51.6% and 57.3%. While UK Finance maintains that Paris was not excluded due to its tax position, critics argue the omission was a strategic attempt to make London appear less competitive.
Industry leaders are divided on the potential for tax increases. JP Morgan CEO Jamie Dimon warned that a hostile tax environment could risk jobs and investment, whereas Barclays CEO CS Venkatakrishnan stated a tax rise would be bearable. Meanwhile, the Trades Union Congress and Positive Money are urging Chancellor John Healey to increase the bank-specific surcharge to claw back windfall profits from booming banks.
