UK bank bosses demand policy stability ahead of critical budget

The bank chiefs in London call for more policy clarity and stability for fear that tax increases in the future British budget may reach the financial services sector.

Speaking with Steve Sedgwick from CNBC in London Canary Wharf Region on Wednesday, Barclays, Citi and JP Morgan, CEOs from the CNBC, said that Britain successfully worn the turmoil of US President Donald Trump in April.

However, they stated that they were careful before the potential tax increases in the autumn budget of Finance Minister Rachel Reeves, which was planned on November 26th,.

During summer commonly reported Reeves was thinking of a bank decline tax for public finances to make a billions of pounds of holes.

“An important part of growth growth, so it is not good to milked the financial sector, because it prevents investments.” He said.

“It prevents the competition, prevents growth. We live in the financial heart of London. London is one of the two largest financial centers in the world.

Venkatakrishnan told CNBC that the British government was “usually on the right path.”

However, as the country is probably faced with higher taxes than other countries, it warned that “a consistent approach to the bank regulation, including bank taxation, is critical in ensuring that the bank activity remains competitive.

“The world is our oyster, England is our house and we should work with both,” he said.

Assistant CEO and investment banking President Conor Hillery, EMEA in JP Morgan, said that investors and companies want more precisely when it comes to investment decisions, planning and acquisitions.

In an interview with CNBC on Wednesday, Hillery told CNBC to the CNBC, which draws attention to the more and more polarization of politics in other countries, “The stability of politics and certainty is a premium in certain parts of the world.” He said.

He added that London is the “leading capital market in Europe” and that the developed agreement activity in the UK, supporting economic flexibility in recent months, supporting economic flexibility after the turmoil of the US tariff in spring.

“Especially in London, in recent months, we have seen an increasing number of companies that want to list in the UK, Hil Hillery said, recently described an investment of £ 150 billion ($ 202 billion) from US companies as” Vote for Trust to the United Kingdom “.

On Wednesday morning, Citi UK CEO Tiina Lee, who said that the markets were “impatient” for reforms and clarity with CNBC in Canary Wharf, was.

Lee said that Reeves recognized banks’ key role in the British growth picture, but it would take time for any legislative amendment to enter into force.

“The chancellor was extremely vocal on the steps that should be taken to protect the competitiveness as a global financial center of London.” He said.

The UK’s urge to stay in a competitive impulse faces pressure to solve the budget deficit of Reeves’ office for £ 62 billion ($ 83.5 billion), which triggered speculations that prefer to increase more potential tax on the government. The economic growth of the UK was flattened in July after a 0.3%expansion of the second quarter gross domestic product.

In JulyThe government offered suggestions to make the British financial services sector more competitive and launched London as “one of the two global financial centers”. The proposals included the deepening of relations with various markets from the US and China to the EU and the Middle East Gulf states, the promotion of retail investment culture, and the increasing funds for research in the sector, especially for AI development.

“It was very clear that the financial services sector contributed to 10% of the UK’s tax revenue,” the government and especially the chancellor’s growth in the UK economy was very clear. “

When asked if Citi’s customers want to leave England to prevent any tax hikes, Lee said, “We don’t hear this.”

Accepting the tough financial situation, Lee said that customers want Britain to remain as a stable and competitive tax regime. “This is the key message we continue to deliver to the government.”

Financial services providers are not alone in tax concerns. The estimated 10,000 millionaire left London in 2024 to escape a new tax regime focused on the city’s “Domsuz” super rich.