Further tax burdens on financial services would be an 'own goal for competitiveness', warns CBI Chief

Budget must give business breathing space and back wealth creation

The CBI’s Chief Executive, Rain Newton-Smith, will today (Wednesday 21 October) urge the Chancellor to give businesses the breathing space they need to invest, hire and grow ahead of next week’s Budget.

Speaking at the organisation’s London Autumn Reception at the British Museum, Newton-Smith will warn that the UK’s “financial sector already faces a higher tax burden than other global centres”, stressing that “adding to that would be an own goal for our competitiveness.”

Newton-Smith will champion the contribution of London's financial services sector to growth across the UK, noting that it supports more than 650,000 jobs outside the capital and contributes more than £200 billion to the UK economy each year.

She will argue that growth comes from "helping struggling sectors, not holding back thriving ones", and call on the government to be bold on the practical decisions that determine whether investment happens in the UK or elsewhere. She will argue that when London and its leading industries thrive, the benefits ripple across the country through jobs, investment, stronger supply chains and greater prosperity.

On London's role as a global financial centre and driver of growth, Newton-Smith will say:

"London is truly great and London is open for business.

"And it's so important that we recognise that when our cities are great, our sectors are booming and our businesses are brilliant - the benefits don't stop with them.

“They ripple out, to other regions, to other sectors and to people right across the UK."

"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."

Championing the contribution of financial services across the UK, she will say:

"Our Financial Services may be centred in London but they support more than 650,000 jobs outside the capital.

“They add more than £200 billion to our economy every year. They are a great British success story.

"And we want our strongest sectors to keep getting stronger. Because that is where growth comes from."

"We drive growth by helping struggling sectors, not holding back thriving ones."

Warning against introducing further tax burdens on the financial services sector and calling for a pro-growth, pro-investment Budget, Newton-Smith will say:

"Our financial sector already faces a higher tax burden than other global centres. Adding to that would be an own goal for our competitiveness."

"So as we've said to the Chancellor, the Budget next week must be about giving business breathing space and backing wealth creation.

"Because breathing space gives businesses room to invest. To hire. To innovate. To make the decisions that drive growth in every postcode."

On the need for bold action to create the conditions for investment and growth, she will say:

"That means government and business being bold on the practical things that decide whether investment happens here or somewhere else."

"A government creating the conditions for business to invest with confidence. And business turning that confidence into jobs, skills, prosperity and growth."

On spreading success and creating the conditions for long-term growth, she will conclude:

"Whether it is London or Edinburgh, we should be proud of the places and sectors where the UK is already succeeding. And help others to join them."

"If we get those conditions right, London can keep leading, our strongest sectors can keep growing and more businesses and communities across the UK can share in that success."