‘Own goal’ – City chiefs warn Healey higher bank taxes hurt jobs outside London

Top City chiefs are launching last-ditch attempts to stop a punishing tax raid on banks at the Budget, warning the move will hurt jobs and growth outside of London. Rain Newton-Smith, the chief executive of the CBI, is set to warn Chancellor John Healey that increasing taxes on banks would be an “own goal for our competitiveness”. Speaking at the organisation’s Autumn Reception this evening, Newton-Smith is expected to say: When London thrives, it creates jobs across the UK. The strength of London sustains supply chains, attracts investment and supports growth in every part of the country. When London thrives, that benefits everyone. The intervention comes as Healey is poised to raise taxes on the banking sector in his forthcoming Budget. Banks are already charged at higher rates than other sectors in the face of the banking surcharge, which is levied on top of corporation tax. The surcharge currently sits at three per cent after being reduced from eight per cent u