24 March 2010
City of London Corporation response to the Budget
Commenting on today's Budget (24 March), The Lord Mayor of the
City of London, Nick Anstee said:
On the Bank Tax:
“The financial services industry makes a huge contribution to
the UK economy, generating 12.1% of total tax revenues in 2008/09
and employing over one million people.
"That is why it is sensible that the Chancellor has announced he
will only pursue a Bank Tax with international agreement and
international application - unilateral action could be particularly
damaging to a country with such a large financial services
industry.
"However, as always, the devil will be in the detail.
"The International Monetary Fund's report next month will play a
crucial role in outlining what format a global tax on banks could
take. The potential impact of such a measure must be carefully
assessed given the fragile nature of the global economic
recovery."
On the public spending commitment:
"The City welcomes the national infrastructure spending outlined
by the Chancellor.
"Quality infrastructure projects, such as Crossrail, are crucial
to delivering the additional capacity needed to ensure London, and
indeed the UK’s, future prosperity.”
The Chairman of the Policy and Resources Committee at the City
of London Corporation, Stuart Fraser added:
On the Bank Tax:
“There are signs that political leaders across the world are
warming to the idea of a bank tax but we must continue working
towards some kind of consensus – particularly amongst business
environments facing similar issues and similar political pressures
to the UK such as the USA and Europe – in order to safeguard our
competitive position in the global marketplace.
On increased lending requirements:
“Of course the City wants lending to small businesses to
increase and we welcome all support for them. These enterprises are
the bedrock of our economy and will be a key driver towards
economic recovery and future growth.
“However, we cannot afford to let our banks be caught between
demands for increased lending and demands for greater capital
buffers.
“The last thing we want is for them to be forced to lend
uneconomically and to create bad debts, as happened in the U.S.
with Freddie and Fannie Mac.”
Ends
Notes for editors
About the City of London Corporation:
The City of London Corporation is a uniquely diverse organisation.
It supports and promotes the City as the world leader in
international finance and business services and provides local
services and policing for those working in, living in and visiting
the Square Mile. It also provides valued services to London and the
nation. These include the Barbican Centre and the Guildhall School
of Music & Drama; the Guildhall Library and Art Gallery and
London Metropolitan Archive; a range of education provision
(including three City Academies); five Thames bridges (including
Tower Bridge and the Millennium Bridge); the Central Criminal Court
at Old Bailey; over 10,000 acres of open spaces (including
Hampstead Heath and Epping Forest), and three wholesale food
markets. It is also London’s Port Health Authority and runs the
Animal Reception Centre at Heathrow. It works in partnership with
neighbouring boroughs on the regeneration of surrounding areas and
the City Bridge Trust, which it oversees, donates more than £15m to
charity annually.
Press contacts
Sanjay Odedra, Press Officer, City of London Corporation
Tel: 020 7332 1835
Email:
sanjay.odedra@cityoflondon.gov.uk
James Abbott, Press Officer, City of London Corporation
Tel: 020 7332 1754
Email:
james.abbott@cityoflondon.gov.uk