UK Finance responds to the Chancellor’s Autumn Budget

David Postings, Chief Executive of UK Finance, comments on and responds to the Chancellor’s Autumn Budget delivered on 27 October.

“The Chancellor has set out a compelling vision to deliver a stronger economy. As the UK recovers from the impact of coronavirus, the banking and finance industry will continue to support people and businesses to rebuild. We will continue to work closely with the government to maintain a strong banking and finance sector that delivers jobs and investment, and drives growth across the nations and regions.”

On taxation:

“The banking and finance sector makes a significant contribution to the UK public finances, and we welcome the Chancellor’s announcement that the bank corporation tax surcharge will be reduced to partially offset the planned increase in corporation tax. This move recognises the importance to the UK of an internationally competitive sector which supports growth, jobs and innovation across the UK. At the same time, the increase in the bank surcharge annual allowance to £100 million will also help to support healthy competition in the sector.

“The banking sector will, however, see an increase in its total tax rate and will continue to be taxed at a higher rate than other sectors of the UK economy. Given the overall tax position of other global financial centres, we urge HM Treasury to keep the banking and finance sector’s total tax rate under active review – this will ensure the UK continues to be an attractive place to do business, is globally competitive, and enables the sector to support the economic recovery and the net zero transition.”

On support for business:

“The banking and finance industry continues to deliver an unprecedented level of support to help businesses of all sizes through these difficult times. The Recovery Loan Scheme is providing businesses with the finance they need to continue to rebuild, and we welcome its extension until the end of June 2022. We know that many firms are facing pressures heading into the winter and this move will help businesses across the UK.”

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