Liz Truss has been urged by City figures to slash taxes on banks amid speculation the incoming Prime Minister could lighten the tax burden for UK firms.
Ex-chancellor Rishi Sunak last year announced a cut in the UK bank surcharge on profits from 8 to 3 per cent to offset the effect of a planned increase in Corporation Tax.
Truss will cancel the planned increase in Corporation Tax and there are now suggestions she could still implement the cut in the bank surcharge – something Labour is calling a “stealth tax cut for banks”.
TheCityUK, the UK’s largest financial services body, said the UK has “been in an uncompetitive position compared to the US and EU” and called on Truss to ease the tax burden for banks.
Veteran City figure David Buik said he would be “mortified” if the bank surcharge cut is scrapped as it would “send the wrong message to global investors”.
The banking surcharge was introduced in 2016 at a rate of 8 per cent on all annual profits over £25m.
There have been calls from City groups to reduce or scrap the tax post-Brexit as the UK seeks to maintain its global competitiveness in the financial services arena.
A Truss spokesperson said the incoming PM’s “bold plan to cut taxes, boost investment and drive growth will ensure we get the economy moving”.