City of London Corporation response to Summer Budget 2015
Reaction to the Summer Budget 2015 from Lord Mayor of the City of London, Alan Yarrow, and Policy Chairman at the City of London Corporation, Mark Boleat.
Lord Mayor of the City of London, Alan Yarrow, said:
“I am glad that the Chancellor has recognised the vital contribution that banks make to the UK. Banks already pay the greatest share of the total tax contribution in financial services (almost 65%) and account for the greatest share of employment (63%). A strong banking sector is vital to supporting growth throughout the wider economy, and the strength of the UK’s financial services offer is one of the UK’s greatest assets.
“When the bank levy was introduced in 2011 it was an extraordinary and challenging time for the financial services sector and the wider UK economy. The background is now very different. The levy was acting as a drag on the City’s competitiveness and the ability of the banks to build reserves and of course to lend to businesses. It was also forcing global banks to reconsider their domicile. We await to see whether today’s moves are sufficient to convince those banks that the Government has been listening to the concerns of the sector.”
“Reducing corporation tax to 18% by 2020 helps give the UK one of the most competitive tax regimes in the developed world. This is a strong endorsement of the business community’s ability to create jobs and power economic growth. This will make us a magnet for investment and show once and for all that Britain is truly open for business.”
“The commitment to getting on with creating the Northern Powerhouse is admirable. Further funding for infrastructure, combined with greater devolution for northern cities, will help achieve this objective. We have always been clear in the City that supporting growth outside of London is not to the detriment of the capital - but on the contrary helps London’s and the wider UK’s economic security. With two-thirds of the 2 million financial and professional services jobs found outside of London, the City is a keen advocate of the Northern Powerhouse. It is a critical part of the UK’s offer that we have financial centres across the country which offer a variety of products to a global marketplace.”
Policy Chairman at the City of London Corporation, Mark Boleat, said:
“Today we have seen a pro-growth, pro-enterprise Budget which is going to help support the UK continue to build a strong, sustainable economy. From the viewpoint of the City, today’s announcements are a welcome development, particularly the reduction of Corporation Tax, and will help maintain the competitiveness of the City.”
“An apprenticeship levy on big firms shouldn’t be seen as a financial penalty. It is an opportunity for employers to set the skills agenda and have more control over the training programmes that supports growth in their sector. With so many young people still blighted by unemployment, there is a real chance for firms to take the lead in developing the future generation of workers, which will not only boost their productivity but enhance social mobility.”