News Release

City of London Corporation

14 September 2026

City Corporation urges government to avoid harming UK financial and professional services at the Budget

• City of London Corporation Policy Chairman Chris Hayward urges the Chancellor to “do no harm” to financial and professional services at the Budget
• That means no more sector-specific taxes and protecting the VAT exemption for financial services to preserve the UK’s competitiveness
• City Corporation also seeks reforms to boost investment; a pro-growth approach to planning, and a pathway to reform taxation on equities

The City of London Corporation is urging the government to “do no harm” to the financial and professional services sector at the Budget, arguing that the sector’s success is vital to delivering growth in every postcode.

The sector is a key driver of economic growth, generating £323 billion in economic output and contributing more than £110 billion in annual tax revenues, equivalent to around 12 per cent of all UK tax receipts. It also supports 2.5 million jobs – two thirds of them outside London.

UK banks already face higher tax rates compared with their peers in Amsterdam, Frankfurt, Dublin and New York¹. In his Budget submission to Chancellor, Chris Hayward, the City Corporation’s policy chief, is urging the government to protect competitiveness by resisting a windfall tax on banks; avoid wider sector-specific tax rises and keep the VAT exemption for financial services.

Policy Chairman for the City of London Corporation, Chris Hayward said:

“The City Corporation already plays a critical role in helping to deliver the Government's ambition for growth in every postcode.

“The sector supports 2.5 million jobs – two thirds of them outside London – and already provides around 12 per cent of all UK tax receipts that help pay for vital public services, like social care.

“Our latest research² shows the UK is losing ground in the battle for overseas investment. So we cannot be complacent about the strength of the sector.

“I urge the Chancellor to do no harm to financial and professional services at the Budget. With public finances under strain, stronger growth is the answer.

“Without a financial system firing on all cylinders, we cannot help entrepreneurs build globally significant companies that create wealth and jobs, drive investment into the industries and infrastructure of the future. Nor can we help families secure their financial futures and give them the opportunity to succeed

“The Chancellor must therefore create the conditions for a thriving sector, through concrete action to boost investment, tax reforms to encourage more listings, and a pro-growth approach to planning.”

The City Corporation is calling on the Chancellor to set out a targeted programme of tax simplification, to reduce compliance costs and provide greater certainty and support investment. It should also consider applying a growth and competitiveness test to growth new tax policy, establishing a pathway for the eventual removal of stamp duty on shares.

The City Corporation is also calling for longer-term funding and improved headcount for the Office for Investment: Financial Services, the UK’s concierge service for financial services firms looking to invest. Alongside this, it is calling on Government to help build a stronger pipeline of investable infrastructure and real asset projects by providing targeted funding and commercial support to local and regional authorities, with InvestConnect – a new AI-enabled platform launching this autumn – providing a consistent national route to bring those opportunities to institutional investors. The submission also calls for faster planning and grid connections, enabling infrastructure and targeted incentives to unlock strategic projects and mobilise greater private investment.

The City Corporation is also urging the government to take a pro-growth approach to planning. The Square Mile will need to accommodate nearly 900,000 jobs by 2050. Achieving this requires the delivery of well over 1.2 million square metres of commercial floorspace, predominantly through the development of tall buildings. But the adoption of the City Plan 2040, the emerging local plan for the Square Mile, has been subject to a delay due to a Ministerial direction. In a worst-case scenario, the alternative under consideration could lead to up to 6,800 fewer office-based jobs being accommodated, costing the economy £1.2 billion GVA each year, with a loss of up to £50 million in the Community Infrastructure Levy.

Notes to editors

1. For a model corporate and investment bank, the 2025 total tax rate was estimated at 46.4% in London, compared with 42.2% in Amsterdam, 38.9% in Frankfurt, 28.9% in Dublin and 27.9% in New York.
2. Investment Landscape report September 2026: The UK Investment Landscape 2026 - Unlocking capital for growth

About the City of London Corporation:

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally successful UK. www.cityoflondon.gov.uk