TL;DR
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A column by This Is Money City Editor Alex Brummer argues that the UK financial sector lacks a prominent domestic advocate ahead of the Budget. It cites the sector’s contribution to jobs, tax and exports while warning that additional levies could affect competitiveness; the article does not confirm that new taxes have been decided.
Alex Brummer, City Editor of This Is Money, argues that the UK financial sector lacks a forceful domestic public voice ahead of the forthcoming Budget, when banks and other businesses face calls for higher taxes. His October 9 column sets out the sector’s economic contribution and warns that further levies could make the City less competitive, but it does not establish that any new tax has been agreed.
Brummer points to a gap between the City’s numerous trade bodies and institutions and the relative absence, in his view, of a senior figure making a sustained case for UK finance. He names UK Finance, TheCityUK, the City of London Corporation and the London Stock Exchange, while arguing that Bank of England Governor Andrew Bailey tends to speak about broad financial risks rather than routinely advocate for UK banks, insurers, markets, asset managers or investors.
The column highlights remarks by London Stock Exchange chief Julia Hoggett as an example of a more direct intervention. Brummer says she has urged Chancellor John Healey to abolish stamp duty on share trading and called for tax incentives to encourage British asset managers to invest in UK companies. Those proposals are presented as arguments made by Hoggett, not as adopted government policy.
Brummer cites figures that finance and legal work contribute up to 12% of national income, and that finance and related industries employ 2.5 million people and pay £110.2 billion in combined taxes. He also cites House of Commons data showing UK services exports rose 69% from 2008, with financial services contributing £105.1 billion and a surplus of £84.4 billion. The column argues these figures should inform Budget debate, while warning that further charges could prompt mobile firms to reconsider where they operate or list.
Budget Choices Could Affect City Competitiveness
The argument matters because financial services are a major employer, export earner and source of tax revenue, according to the figures cited in the column. Decisions on taxation can affect companies’ costs and the attractiveness of London as a place to invest, trade or list shares. Brummer’s warning is that policymakers weighing new revenue should also account for possible effects on investment and activity.
That is a case made in an opinion column, not evidence that firms are already leaving because of a particular tax decision. The article uses fintech company Revolut’s reported consideration of Nasdaq alongside London for a potential flotation as an example of competition between markets. It does not say a listing has been selected or that taxation is the sole reason for the reported consideration.
The piece also raises a question about who communicates the sector’s case to the public. The presence of several trade organisations does not necessarily mean they speak with one voice. Brummer’s concern is that, during a politically charged Budget debate, calls for taxes on banks and wealth may receive more attention than the sector’s contribution or the risks of reducing its competitiveness.
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Governors and City Voices Before the Budget
Brummer contrasts the present situation with earlier periods when Bank of England governors intervened more visibly in debates affecting finance. He recalls Mark Carney’s efforts to explain banking and the City to a wider audience, and Mervyn King’s role in 2012, when he summoned Barclays chairman Marcus Agius during the bank’s leadership crisis. These are historical examples offered to support the column’s argument about public advocacy.
The article also notes that Bailey has spoken on subjects including artificial intelligence, private credit, sovereign debt and supply-side shocks. Brummer does not dispute that these issues matter to finance; his distinction is that such remarks are often global in focus rather than a direct defence of UK financial firms. He says Jamie Dimon, the American chairman of JPMorgan, has been a more prominent voice opposing windfall taxes on banks than UK bank leaders.
The immediate setting is the run-up to a Budget, with debate over public finances and potential taxes. The source column does not provide a Budget date or a confirmed list of measures. Its figures on employment, tax and exports are attributed to the column and cited public data; they describe economic activity, not a forecast of how any policy would affect future revenue.
“Who speaks for the City of London?”
— Alex Brummer, This Is Money City Editor
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Tax Plans and Business Responses Remain Open
The column does not confirm which, if any, additional taxes on banks, wealth or businesses will appear in the Budget. It also gives no government response to Hoggett’s proposals and does not establish whether the Chancellor is considering abolishing stamp duty on share trading or offering investment incentives.
Brummer warns that further levies could influence companies’ location and listing decisions, but the article does not quantify such an effect or show that a specific firm has moved because of a particular tax. Revolut’s reported interest in Nasdaq as well as London remains a possible future listing route, not a confirmed decision. The timing and details of the Budget measures remain unknown in the source material.
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Budget Measures Will Test the Argument
The next clear development will be the Budget and the government’s published tax and investment measures. Those announcements will show whether finance faces new levies, whether any changes to share-trading stamp duty or investment incentives are adopted, and what rationale ministers give for their choices.
In the meantime, the debate may involve government, financial-sector trade bodies, company leaders and critics calling for higher taxes. Any assessment of the likely impact will require details of the measures and evidence of how firms respond. Brummer’s column makes the case for a louder City voice; it does not establish that the sector’s concerns have changed government policy.
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Key Questions
What is the main point of Alex Brummer’s column?
Brummer argues that the UK financial sector needs a more prominent domestic advocate ahead of the Budget, particularly while possible taxes on finance are being debated.
Has the government confirmed new taxes on the City?
No. The source column discusses calls for taxes and warns about possible effects, but does not confirm that any new Budget levy has been agreed.
What changes has London Stock Exchange chief Julia Hoggett called for?
As described by Brummer, Hoggett has urged the Chancellor to abolish stamp duty on share trading and proposed tax incentives to encourage British asset managers to invest in UK companies. The column does not say either proposal has been adopted.
What figures does the column give for finance’s contribution?
Brummer says finance and legal work contribute up to 12% of national income. He also cites 2.5 million jobs and £110.2 billion in combined taxes for finance and related industries, along with Commons data on services exports since 2008.
Does the article say Revolut is moving its listing to the United States?
No. It says Revolut is looking at Nasdaq as well as London for a possible flotation. It does not report a final listing decision or establish that taxes are the only factor.
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