City anger over report ignoring 50% tax
A number of business heavyweights are said to be angry that a report, commissioned by Chancellor Alistair Darling, on the competitiveness of the City doesn't address the potential impact of a new top rate of income tax.
Ignored: An Alistair Darling commissioned report fails to address the impact of the 50% tax on the City
The report, due to be published on Thursday, is expected to acknowledge the importance of having a stable tax framework, but will not refer to the 50% rate, announced by Darling in the Budget, which will hit those earning more than £150,000 a year.
Members of Darling's advisory Financial Services Global Competitiveness Group - which includes a number of City grandees like HSBC chief Michael Geoghegan and London Stock Exchange boss Dame Clara Furse - were stunned to discover the report will not address the issue.
Any admission in the report that the new tax on higher earners could damage the City's prospects would have been an embarrassing blow to the government.
Critics say the government's tax plans will spark an exodus of talent from the City to more business friendly countries.
It comes as reports said Britain is rapidly falling down the ranks of the world's tax-friendly destinations.
Figures from accountancy firm Deloitte suggest that for a business owner earning £250,000 a year, the UK will soon be more expensive than Ireland, the US, Singapore, Hong Kong and Germany, as well as Jersey and Switzerland.
Lloyds List publishing group Informa last week became the first big company to say it is shifting its tax base from London to Switzerland because of recent changes in the Budget. Others, such as United Business Media and WPP, have already moved their tax affairs to Dublin.
Most watched Money videos
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Fiat pledges to cease grey car production as they launch new EV
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- How to invest for income and growth: SAINTS' James Dow
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Blue Whale fund manager on the best of the Magnificent 7
- Mini Cooper SE: The British icon gets an all-electric makeover
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Snoop Dogg cannabis firm to ditch London after losing 97%...
- Used car sales hit a five-year high as fresh supply of...
- Ford confirms it will cull another of its best-selling...
- Watches of Switzerland buys Italy's Roberto Coin Inc for...
- ITV hit by Hollywood strikes as it pins hopes on Euros...
- Hedge fund tycoon's £34m silver salvage claim sunk at the...
- Avon Protection handed £38m gas mask contract by MoD
- Controversial Brewdog founder James Watt steps downs
- Drivers abandon Direct Line after insurance premium hikes
- Why we need more than a British Isa to move the dial on...
- Mortgage rates are climbing again - should we be worried?...
- BUSINESS LIVE: BoE base rate decision; ITV eyes ad market...
- BAE Systems tools-up for growth as Britain plots defence...
- We do need to resolve inequality admits £8m-a-year...
- TSB to close one in six branches: More than 6,000 shut by...
- Oil industry engineer Wood Group rejects £1.4bn Dubai...
- Millions kept in the dark over City watchdog's mystery...
- Spring property bounce is a damp squib - Rics estate...