22 June 2010
City of London Budget response
Commenting on today's Budget (22 June), The Lord Mayor of the
City of London, Nick Anstee said:
Tax/Corporation Tax:
"This Budget represents an important step toward returning the
public finances to a healthier state. The City welcomes the
Chancellor's commitment to support the growth of private enterprise
and the downward trend in corporation tax will help to achieve this
outcome.
"In such challenging circumstances, we must all pull together in
the same direction and the City – having raised £61.4bn of the
nation's total tax revenues in the fiscal year ending 2009 - will
continue to make a significant contribution to the UK economy.
City's competitiveness:
"A successful financial services sector helps to support and drive
the wider economy forward. But in order to ensure that the City
thrives and provides the finance needed by businesses across the
country we need predictability, stability and certainty. Confidence
in the regulatory and tax environment is crucial to maintaining the
competitiveness of the UK, especially as the international business
community is becoming increasingly mobile."
"That is why in order to maximise our revenue streams we must
make sure that the UK is not only open for business but that it is
also open to business from around the world."
Commenting on today's Budget (22 June), The Policy Chairman at
the City of London Corporation, Stuart Fraser, said:
Bank tax
"For some time now I, along with
many others in the City, have been warning of the risks of imposing
taxes or regulating in isolation.
"We understand the political necessity of ensuring that the
banks are seen to be contributing to the Exchequer when tax revenue
is so vital but we must be aware that, following last year's bonus
tax, this further imposition on the sector risks sending a message
that the banks are still seen as a cash cow by the UK
Government.
"In the short term, moves by other Governments along similar
lines may lessen the competitive impact but we should bear in mind
that our competitors in the future – particularly in Asia - have no
intention of joining us.
"The Chancellor is right that it would be unrealistic to expect
full G20 agreement on this issue especially because there are many
countries which have not experienced a banking crisis and thus see
no reason why they ought to introduce such a levy.
"We must remember that the City operates in a global marketplace
and we will only be in a position to judge properly the impact this
levy will have on our international competitiveness when these
other countries provide further details of their proposals."
Infrastructure
"The City of London
welcomes the Chancellor’s announcement that there will be no
further reductions in capital spending and that those projects
which are vital to boosting growth within the UK will continue to
receive Government support.
"We hope this finally means Crossrail is going ahead as planned.
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"Large-scale infrastructure projects are always in danger when
cuts have to be made but the money we spend now will be returned
many times over in the future through revenues and business
investment.
"Any delays or cost-cutting measures imposed at this juncture
could not only damage our international competitiveness but would
probably necessitate costly upgrades further down the line."
Ends
Press contact
Sanjay Odedra
Tel 020 7332 1835
Mob 07831 542 856
Email
sanjay.odedra@cityoflondon.gov.uk