George Osborne promised that his would be a “budget for working people” as he presented the first Conservative Budget since 1996.
But how did he deliver on this promise for the financial industry? And how has the industry received the Budget? Here’s what analysts and firms are saying.
Osborne’s Budget included several points of particular interest to the City, with plans to keep large corporations in the UK through the bank levy and a slashed corporation tax.
The chancellor announced that he would cut corporation tax to 18 per cent by 2020 “to announce to the world that ‘Britain is open for business’”.
This is a surprise move for the business community from Osborne, received by the industry as a pro-business boost.
Stella Amiss, analyst at PwC, described it as an “unexpected”, but positive move, which will “help keep UK as a competitive place to do business”.
KPMG has released a handy guide showing how the UK’s corporation tax will compare with other nations’, which shows that, at 18 per cent, the slashed tax will put the UK comfortably under the EU average of 22.15 per cent.
The bank levy will be “gradually reduced” over the next six years – also favourably received.
Permanent non-dom tax status will be abolished, in other words those born in the UK to UK-domiciled parents cannot claim non-dom status – a move that will raise £1.5bn over three years, according to Osborne.
Analysts are sceptical as to whether this will raise much money, but appreciate that they will be well-received.
Changes to non-doms will be popular but unlikely to raise much in additional tax.
Alex Henderson, partner at PwC:
Change in non dom is not unexpected. People will know where they stand and have time to decide whether to stay.