Britain financial and professional services lobby said that the country needs to ease taxes on banks and make it easier to hire staff from abroad. This was filed as a blueprint to aid London in targeting New York with the five year-year financial plan as the finest international financial centre.
On Tuesday, the strategy paper referring to TheCityUK mentioned the already published itinerary in government-endorsed reports and also in some reports published in the current months. This arrives as the London administration plans to regain the lost land after Britain’s adieu from the EU.
“By some metrics, the UK is losing ground: London is currently slipping further behind New York each year while other centres are strengthening,” the paper averred. It further added, indicating the high stock market listings of New York, “The U.S. financial capital overtook London in 2018 in a leading annual survey. The UK, therefore, needs to adopt a relentless focus on strengthening its international competitiveness to win back the prize of being the world’s leading international financial centre.” The total tax rate for a London bank is 46.5%, 13% higher than a New York based bank, it added.
It will certainly be difficult for the government to reduce taxes amidst this COVID crisis. The decision to cut the taxes will affect the financial landscape of the country, however, it will enable you to hire individuals as per the Brexit referendum that aims to clamp down on increasing international mobility.
TheCityUK CEO Miles Celic said The single most important issue for financial firms is being able to hire globally. “In conversations, we have had with the government, I think that is something that is absolutely understood,” as quoted by Reuters.