Rain Newton-Smith, chief executive of the Confederation of British Industry (CBI), is expected to argue that added taxes could weaken Britain's financial-sector competitiveness, The Independent reported, as talk builds around a possible bank surcharge increase.
Her remarks are due at the group's autumn event in London on Wednesday, held at the British Museum. Newton-Smith is expected to ask Chancellor John Healey to give businesses “breathing space” in his first Budget and support private investment, The Independent reported. She is also expected to argue that investment decisions shape companies' ability to expand, hire and innovate across the country.
The Independent reported speculation that the bank-profit surcharge could return to 8% from 3%, reversing a reduction made under former Chancellor Jeremy Hunt. The report presented the increase as a possibility.
To show the sector's reach beyond London, Newton-Smith is expected to cite its support for more than 650,000 jobs beyond the capital and a yearly contribution above £200 billion to the UK economy, The Independent reported. She is also expected to call a further tax “an own goal for our competitiveness.”
The debate includes competing views of the burden. UK Finance has warned that another increase could limit banks' ability to finance households and businesses, while the Trades Union Congress (TUC) has cited strong profits in supporting a higher charge, as EconoTimes previously reported on the bank-tax debate.
HM Treasury has scheduled the Budget for Oct. 28.
